Treasury puts foreign e-commerce companies in the spotlight

The tax agency under the Ministry of Finance published the annual tax control plan in the official state gazette this Thursday. This document sets priorities for the agency’s inspection and sanction actions, including greater control over e-commerce companies based abroad but operating in Spain.

Specifically, the tax agency refers to companies that are officially registered in Spain and liable to pay VAT on their sales made here, but are not established in Spanish territory. This way the tax has to be declared and paid by them, not by the platforms they sell on. However, the fact that they are not in Spain “makes it difficult to properly verify their sales for tax purposes,” the agency said in a statement.

Now the Treasury is set to extend its scrutiny of these companies, creating a new information obligation that will affect the platforms themselves. This will be supplemented by the control of cross-border payment activities through payment service providers. This will take time and depends on the international exchange of this information, so until then it will implement a plan that includes a review of the census of foreign sellers to check formal compliance with obligations, against the declared figures of imported volumes.

The plan presented by the tax agency this Thursday is more extensive and focuses on other sectors and taxpayers in which it sees the risk of activities contrary to tax obligations. For example, large assets. The agency explains in a document registered with the BOE that “the presence of behavior extremely harmful to the public treasury” was revealed by actions such as simulating tax residence abroad in order to have a lower tax burden.

Added to this was the now larger fence on the opposite road. Foreign taxpayers who move to Spain and spend more than half of the fiscal year (183 days) in the country, which requires them to pay personal income tax. However, the tax agency confirmed that there are large assets that continue to be declared for non-resident individuals tax only, instead of all their worldwide income. However, the agency recognizes the complexity and resource-intensive nature of these investigations.

Other areas are being added, such as the misuse of companies to hide income from individuals. Or a greater siege of the digital economy and neobanks. Regarding the latter, the agency notes that they are increasing their activity in Spain, without establishing themselves in the country. The agency wants to monitor whether these types of platforms can lead to evasion or fraud schemes by those who use their collection services.

New taxpayer service systems are also planned. The agency intends to deepen the integrated model, both in person and remotely, so that the citizen himself can choose how to deal with the administration. Among other aspects, a new telephone service system will be launched. In addition, work will be done to simplify and improve the language to make them more accessible to citizens.

Source: El Diario

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