When an entrepreneur decides to launch an online store, it is necessary to register as an entrepreneur or professional, regardless of the volume of business and sales.Mounting an electronic commerce is a professional exit that an entrepreneur can value.However, it is necessary that it be taken into account that it is an activity that requires a series of procedures.For the purposes of the VAT Law, it is necessary to register in the Treasury and in Social Security to operate.
An electronic trade with a tax headquarters in Spain must take into account where it sells its products or services to know how VAT should be applied.Next, we will break down how it is done in each of the cases, depending on where the articles are sold.Depending on where the company to which it is sold is located.If in Spain (Peninsula or not), or outside our borders.
Interior sales
As reported in Cairol Advisors, it is considered an interior sale, which is destined for the Peninsula and Balearic Islands.In this case, the VAT that must be applied is the one that corresponds to the product or service sold, whether the recipient a company or a individual.The percentage that applies to each product or service is divided into three, as indicated by Quipu: the general VAT of 21%, the reduced (10%) and the super reduced (4%).
It could happen that the company to which the product or service is sold has its fiscal headquarters in another country.Well, the corresponding Spanish VAT must be applied, since the delivery is made in the same territory.
Sales to the Canary Islands, Ceuta and Melilla
Although autonomous and Canary Islands are Spanish territory, sales to these destinations are taxed with other VAT taxes.Specifically, in Ceuta and Melilla, the tax on production, services and import (IPSI) and in the Canary Islands the Canarian Indirect Tax (IGIC) is applied.
These operations are considered exports, so it must be indicated in a special way in the corresponding invoice as follows: “Exempt operation under article 21.1 of Law 37/1992, of December 28, of the Value Added Tax”
Sales to individuals from EU countries
For sales outside Spain, it must be differentiated if the recipient is an individual or a company.When the buyer is a individual from an EU country, the corresponding Spanish VAT can be applied.Only one exception must be considered, and that is when the sales threshold that each country has set is exceeded.That is, if you have sold to a country the maximum sales allowed in a month, once this limit you must apply the general interest of that country in question.
Another possibility is that you choose to sell the products or services by applying the general VAT of the country of destination in case it compensates.If you have a minor index, the final consumer will buy it cheaper, so it will be more interested.
Sales to EU companies
Online sales to companies belonging to the EU are exempt from VAT.They are considered intra -community deliveries of goods.It is the entrepreneurs who buy the article who must declare VAT in their country.And they don't always have to do it.If you are entitled to deduction, the operation may be released from this tax.
To indicate on an invoice that VAT does not apply in this case, the following must be exposed: "Operation with the investment of the taxpayer in accordance with art.85 of the VAT Law 37/1992".
Sales to countries outside the EU
When selling to countries outside the EU they are particular or companies are considered exports.And exports are exempt from VAT.It is the buyer who must pay the relevant taxes in his country.Similarly, to indicate it in an invoice, it must be done by putting the following: "Exempt operation under article 21.1 of Law 37/1992, of December 28, of the Added Value Tax."
Although the VAT application is lost once it leaves the EU, the exemption must be demonstrated.That is why advice and managers recommend retaining the invoice with the international transport document, as well as the Single Administrative Document (DUE).This file will be filled in order to declare the operation and that is where it is indicated that you are the exporter.
Therefore, electronic commerce can give departures to entrepreneurs who want to develop their business and open new markets selling their products or services.However, it is very important to take into account where to know what taxes apply and how to indicate it.
