Friday, March 4, 2011

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TAX NEWS 2010 Major international trade Scheme

A. VAT AND SERVICES 2010

In January 2010 came into force Directive 2008 / 8 on the rules of cross-border location of services) that sets new rules for determining which services located in tax return. Namely:

• The services a company to a final consumer are deemed to be where lies the seat of the service provider. So, if a English company serving the final consumer French, English VAT will apply on your bill.
• The services business to business where lies are deemed to be the recipient of services. In these cases (say, an Italian company provides an advisory service to a English company) the company providing the service will issue the invoice without VAT, with the receiver (in this example, the English company) who has to make the autorepercusion of the invoice in accordance with the rule of the reverse charge. So

Therefore, when a English law firm offers a service to a company based in France (B2B (business to business)), the English company will not apply any VAT and is addressed (the French) who autorepercuta and declare VAT to the Treasury of the country.

However, when the delivery is done by a contractor for an individual (B2C (business to consumer)), VAT is applied generally in origin. That is, if the same law firm in the previous example provides a service to a particular Italian, will affect a VAT invoice in English.

could say that the intended purpose of the new rules on business services company is paramount to the consumer, ie operations that are located wherever they be consumed by the client that receives them. This will mean that the rule of reverse charge, being used more frequently, even greater importance and, therefore, companies should review their internal procedures to ensure there are no deficiencies in its system of self-billing.
In any case, this new formula, which seems to simplify the system, not eliminate all conflicts. Namely, if an agency makes a statement in English to an employer income tax resident in Italy is it a service to a particular or a professional ?....... and if an invoice English engineering services to a German company (parent company) which has a branch in Spain to receive "de facto" engineering services where we understand that service is provided?
As always, time and case law will give us the answers.

B. NEW MODEL 349 in 2010.

The model 349 has changed the deadline from January 2010, depending on the type of company involved and the volume of operations performed.
Until last year, the presentation of the model was quarterly or annually, depending on the volume of transactions that take out the company.
From January 2010 these periods are as follows:

Generally includes the operations in each calendar month and presented during the first twenty days of the month immediately following the corresponding monthly period. However, the presentation may be bi-monthly, quarterly or annually in the following cases:

• Bimonthly: If at the end of the second month of a calendar quarter the total amount of supplies of goods and services to be entered in the statement summary exceeds EUR 100,000 (as of 2012, the limit is set at 50,000 euros).
• Quarterly: When not in the reference quarter and in each of the four preceding calendar quarters of the total supply of goods and services to be entered in the summary statement exceeds 100,000.
These changes are explained by the need to harmonize with the other EU countries, in order to facilitate control of operations and avoid gaps in hypothetical statements presented in the different EU countries.

Moreover, the new Form 349 incorporates new sections from the first of January 2010. Companies must report on the provision of intra-and not just about the goods exchange operations, as was the case until December of last year 2009.

That is, a English company that provides or receives a service to / from a foreign company based in another Member State is required to specify the operation in the Form 349, indicating the information providers or recipients of services.

Remember that in addition to services (new 2010), the Form 349 required to include information on procurement (and purchasers) supplies of goods and, in Spain, you must also report on the supply (and receivers) intra. This last point, according to Community law, was optional for Member States, but at the time, the English Treasury chose to include it.



C. Recovery of input VAT in EU countries.

The quest to recover the VAT paid in other EU countries have already completed in 2010. No wonder the EU has simplified the procedures for deducting indirect taxes.

Until today, recover the VAT paid by a European company in another Member State was a process requiring much patience.

If a English businessman, to close a sale, he traveled to Berlin (where his company had no permanent establishment) and during their stay, expenses incurred, the employer bore German VAT for such expenses, a VAT could claim a refund. The problem was that, for reimbursement of the VAT, should be directed to the German tax and complete the forms in German. And if after going to Berlin, the English businessman went to Paris, London and Bucharest should do the same procedure in each of the tax agencies of these countries. Be that as it

not all Community Farms had a flexible system of VAT refunds to foreign companies, when the VAT in other EU countries was not very large, many English companies chose to waive the return. This was

the complexity in the recovery of VAT on the outside that, in recent years, the Chambers of Commerce and certain administrative agencies have been providing services to help English companies in this recovery.

This complexity has been completed, in principle, from January 1, 2010, with the entry into force of the EC Directive 2008 / 9 which establishes the rules to recover input tax VAT in EU countries. Now, if a English businessman supports VAT in another Member State, you can claim it back to the English treasury and be it, who coordinate with their European counterparts to do the paperwork.

Thus, since 1 January this year, has significantly streamlined the entire system of return. On the one hand, it has created a single interface that makes it unnecessary to contact the State Treasury which has borne the tax. The return is processed by the English Treasury through a website (still pending clearance), if necessary leaving the provision of invoices and certificates.

Moreover, with the new rules has been established within four months to execute the return, date from which (over 10 days) will begin to rise interest in favor of the company. In any case, the term can be extended to a maximum of six months if the tax information to the employer calls to clarify whether the company is entitled to a refund requested.

It should be underlined that the changes introduced by Directive 2008 / 9 affect the system of refund of input VAT in other European Union states,
ie returns of Article 119 of the VAT Act, regulated by the Eighth Directive. So, unfortunately for companies, the change for the better has not extended its effect to the Thirteenth Directive, ie the return of non-EU residents, returns that remain subject to existing rules.
Http://www.comercio-exterior.es/

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