Spain introduced new rules for domestic reverse charge
Starting from 1st of March 2015 Spain introduced new rules for domestic reverse charge. Purpose of this move was to tighten control and as a result, reduce VAT fraud.
According to new rules, seller of the goods which are subject to domestic reverse charge is obliged to inform customer that it is officially entitled to not charge Spanish VAT.
Seller, who is planning to perform transactions subject to domestic reverse charge, needs to inform Spanish tax office about that fact prior to start of the activity. Seller also needs to seek confirmation from Spanish authorities that is authorized to use nil VAT on local sales.
Aforementioned rules are applicable to PCs, computer chips, games consoles, carbon trading licenses, wholesale electricity supplies and tablets.