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V3042-21 7 December 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · recargo de equivalencia

VAT registration possible for cross-border online sales up to €10,000

A physical person selling jewellery online asks about VAT obligations for intracommunity sales. The DGT clarifies that the €10,000 threshold allows VAT registration in Spain or opting for destination taxation.

The question raised

Value Added Tax obligations in accordance with the new regulations on electronic commerce.

The DGT's ruling

The equivalence surcharge regime is mandatory if the requirements are met and does not allow for waiver. Taxpayers under this regime cannot deduct the amounts paid on their acquisitions. Regarding intra-Community distance sales, the 10,000 euro threshold applies for taxation at origin, with the option to opt for the Union One-Stop Shop (OSS) scheme. The manufacture of costume jewelry from acquired components is considered transformation, which excludes the status of retailer for those products.

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