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Practical guide for completing census form 036

Box 500. Established in TAI or with an EP

Box 500 of Form 036 asks the following question: Are you established in the territory of application of the Value Added Tax or do you have a permanent establishment there?

The territory of application of the Value Added Tax is the Spanish territory, including the adjacent islands, the territorial sea up to the limit of 12 nautical miles, excluding the Canary Islands (part of the Customs Union, although not of the territory of VAT), Ceuta and Melilla (they are not integrated into the Customs Union or the territory of VAT)

For the purposes of Value Added Tax, permanent establishment shall be considered to be any fixed place of business where entrepreneurs or professionals carry out business or professional activities.

In particular, the following will be considered:

  1. The headquarters of management, branches, offices, factories, workshops, facilities, stores and, in general, the agencies or representations authorized to contract on behalf of and on account of the taxpayer.
  2. Mines, quarries or slag heaps, oil or gas wells or other places where natural products are extracted.
  3. Construction, installation or assembly works lasting more than twelve months.
  4. Agricultural, forestry or livestock farms.
  5. Facilities operated on a permanent basis by a business or professional for the storage and subsequent delivery of their goods.
  6. Centers for purchasing goods or acquiring services.
  7. Real estate exploited by lease or under any title.

For the purposes of Value Added Tax, the headquarters of the economic activity will be deemed to be located in the territory where the interested party centralizes the management and habitual exercise of his business or professional activity.

Those taxpayers who have their headquarters for their economic activity, their tax domicile or a permanent establishment involved in the delivery of goods and services subject to the Tax are considered to be established in the territory of application of Tax . It shall be understood that said permanent establishment is involved in the delivery of goods or provision of services when it orders its material and human production factors or one of them for the purpose of carrying out each of them.

In these cases, box 500 “YES” will be marked.

There may be subjects who are not established or have a permanent establishment, but who must register in the census.

Example: a distance seller who exceeds the established sales limit in Spain, or who sells goods subject to special taxes in Spain, operations that must be taxed in the territory of application of the tax. In this case the answer would be NO and page 7, section 11 must also be filled out. A) Special intra-Community trade regimes. Distance sales in the corresponding section in the “From other Member States” option of form 036.