These days have come to light that Treasury is thinking to develop protocols for performance for companies and individuals who profit through e-commerce. During recent months, inspectors have been crossing information of thousands of domains for its incorporation to the databases of the Treasury.
From next month, Treasury will deploy actions aimed at checking of the profits obtained by companies and individuals using the network as a medium to publish Bin and services.
The tax agency has boosted from the year 2014 the control and inspection of firms in the digital economy, they are all those businesses associated with activities exclusively through Internet, and fixed patterns of fiscal risk in these activities.
In particular, making prioritizes the capture and exploitation of the available information on the Internet that allows you to discover hidden activities, as well as the different actions of control over physical persons or entities of website advertising recipients to ensure the taxation of such income and is carrying out inspection operations on those manufacturers or service providers who market their goods or services over the Internet.
Finance and technology
According to Treasury, the use of technology has changed the way of relating the buyer and the seller and thus, It has also changed the way of control by the public administration, which has to cope with new forms of crime, since the relocation allows the existence of submerged along with other activities they are actually companies that use the Internet to evade their tax obligations.
Hacienda pursues actions directed to the double use of losses or expenses, the generation of losses through transmissions of intragroup values, the diversion of income from economic activities through the interposition of non-profit-making entities, as well as corporate reorganization operations and control of financial expense deduction and incorrectly negative taxable compensation.
International Taxation Office
The national office of international taxation was created for tackling the misuse of domestic and foreign regulations and better control the transfer pricing and location of fictional way of fiscal residence in other countries.
Treasury has used the information of the model 720 which is relative to goods and rights situated abroad to detect possible income from these assets and ensure its correct taxation, allowing you to develop actions of embargo on goods and assets located abroad.
Legal requirements of an Internet commerce
The legal requirements for online business and its Internet sales are the same as for any business. The same requirements but with the difference that online retailers do not have to meet opening licenses procedures.
The legal requirements for Internet commerce are:
- Have the possibility of issuing factoras with the VAT rate that corresponds to the product or service.
- Identify the business through the legal pages such as the legal notice and conditions of purchase. These basic data are the name of the company or individual, email, address and VAT registration. All of this is defined by the ‘law of services of the society of information and electronic commerce in Spain’ (LSSICE).
- Provide some system of contract for possible claims or inquiries.
- Take into account the ‘law of protection of data’ (Data Protection Act) which obliges all companies and professional who have personal files and register with the data protection agency.
- ‘ Law of management of trade retailer ‘ which regulates sales to distance without the simultaneous physical presence of both parties. Where deadlines for execution of transactions and payments, the rights to withdraw from the operation are governed and regulated payments with credit cards.
- ‘General terms and conditions act’ on the protection of the rights of buyers and sellers.
Fiscal requirements of Internet shops
The taxes that levied on Internet sales are the same that apply to the traditional trade and other economic activities, i.e., income tax, IRNR and corporate taxes. Therefore, apply the rules of income tax and tax tax levied on income obtained matter what its source or origin.
In reference to the heading to register in the Census of finance through the model 036 is to be done through the activity of trading through Internet, and this should be classified in the IAE according to the true nature of the economic activity regardless of the sales channel used. Therefore, both headings should be enlisted as types of products placed on the market.
In relation to the VAT, services are considered through an Internet commerce services consisting of the transmission sent initially and received at destination by means of electronic processing equipment, including numerical understanding, data storage and transmitted, conveyed and received by cable, radio, optical system and other electronic media.
Different scenarios of the VAT of Internet commerce
It is useful to register in the register of intra-Community VAT operators, that is needed if it is to issue invoices to European companies without VAT.
Before this scenario, the application of VAT has different scenarios that can be applied, which may be the following:
- If the provider and the recipient of the service of Internet commerce are established in Spain, i.e. peninsula and the Balearic Islands shall apply the general scheme of VAT of 21%.
- If the recipient, entrepreneur or professional is established in a Member State of the European Union other than Spain (the place of performance of the service will be the Member State where the recipient is established). Spanish VAT must not have repercussions and the passive subject of the tax in the State of destination is the entrepreneur or professional recipient of the service.
- If the recipient, entrepreneur or professional, established outside the European Union, except Canary Islands, Ceuta and Melilla: the place of realization of these benefits is the State recipient and VAT must not have repercussions.
- Recipient, entrepreneur or professional established in the Canary Islands, Ceuta or Melilla: the place will never be the Spanish territory and the operation be taxed in the territory of destination then VAT must not have repercussions.
- If the recipient is an individual, i.e., it is not an entrepreneur or a professional, established in Spain (Peninsula and Balearic Islands) or in any State of the European Union: the place of performance of the service is the Spanish territory. Must have an impact the VAT to the recipient by applying the general rate of 21 per cent and the taxable person’s tax is the service provider.
- Particular recipient, no businessman or professional, established outside the European Union: the place of service is the State of destination and not VAT should have repercussions on any.
Obligation to check in Internet commerce
Entrepreneurs and professionals are required to issue invoice and copy of the same for supplies of goods and services engaged in development of their business. Also Bill in advance payments, shall be issued except in the intra-Community deliveries of exempt property.
It must be issued on invoice in the following operations:
- Recipient is a businessman or professional who acts as such, irrespective of the regime of taxation that this fostered.
- Other operations in which the recipient required by.
- Supplies of goods for VAT-exempt to another Member State.
- Exports of goods exempt from VAT, except those made in the duty free shops.
- The recipients are legal entities that do not act as businessmen or professionals, regardless of which are established in the territory of application of the tax or not.
- The addressees are public administrations.
Do I have to pay taxes for selling second hand online?
A regular formula is sell items of little value that we do not use, as it would be our console, old textbooks, shoes… You don’t need to declare anything, since cannot be considered an economic activity. However, If the sale exceeds the € 1,000 required by law for the tax of patrimonial transmissions (ITP), that in Spain it is currently 4 per cent.
With the sale, generated the seller an alteration in its heritage that must be declared profit or loss equity in income tax.
If, on the contrary, we sell second hand from other people in order to obtain a benefit or buy items to the wholesale for sale, that we should consider it a professional activity and, therefore, we need to give us as a company and pay the taxes previously commented.
In online trading If the turnover does not exceed the €3000 per year, There is no why declare. So all users who sold second-hand applications by lower values that we have discussed in this section are not required to declare.
Conclusions fiscal obligations of Internet commerce
Daily they carry out millions of operations via the Internet that have transcendence from the fiscal point of view.
To summarize, the main problems posed by Internet on fiscal matters would be:
- Control of all transactions, given their small claims in most cases.
- The problem of adaptation of the various tax regulations, especially as regards each territory.
- The problem of double taxation and, in the absence of non-taxation of certain economic activities.
- Ease of operation from tax havens or e-paraisos, where companies act in most cases via the Internet.