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V0441-17 20 February 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen simplificado

Application of the reverse charge mechanism in intra-Community acquisitions of services for the simplified regime

A professional under the simplified regime enquires whether they must apply the reverse charge mechanism for services provided by a Dutch company and how to declare them. The DGT clarifies that the reverse charge mechanism must be applied and that input tax can be deducted either in the quarter it is accrued or in the final period of the year.

The question raised

Question posed: Applicability of the provision set forth in Article 84.One.2.a).c) of Law 37/1992, which implies the non-application of the reverse charge mechanism. Effect of intra-Community transactions when under the simplified tax regime. In which box of Form 303 the deductible amount of the taxes charged via the reverse charge mechanism must be reported, as well as whether there is an obligation to submit the informative declaration of intra-Community transactions (Form 349), and the filing deadline for the same.

The DGT's ruling

The reverse charge mechanism exception for the taxable person regarding exempt supplies of goods does not apply to intra-Community acquisitions of services. The taxpayer must include the amounts accrued due to the reverse charge mechanism in the corresponding box of their quarterly tax return. The taxpayer may choose to deduct the amounts incurred in the quarter of accrual or in the tax return for the final period of the fiscal year. Furthermore, there is an obligation to submit Form 349 based on the volume of transactions.

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