New regulations for 2023

Law 31/2022, of December 23, on the General State Budget for the year 2023

de Presupuestos Generales del Estado para el año 2023.(BOE, 24-diciembre-2022)

On December 24, 2022, the General State Budget Law for 2023 was published in the ##2##, which introduces the following modifications to the Law 37/1992, of December 28, on Value Added Tax (LIVA):

• Exemptions under the common security and defense policy (articles: 16. 3, 22. Ten and Eleven and 62 LIVA )

  With effect from July 1, 2022 and indefinite validity, article 72 of the LPGE for 2023, in order to transpose the Directive ( EU ) 2019/2235 of the Council, of December 16, 2019 and establish an exemption regime similar to that already provided for the armed forces of any Member State of NATO , declares exempt deliveries, services, imports and intra-community acquisitions of goods when the purchasers are the armed forces of any Member State other than Spain within the framework of the common security and defense policy:

  • For your use or civilian personnel.

  • For the supply of dining rooms or canteens.

• Location of services: rule of effective use or exploitation (article 70. Two LIVA )

  With effect from the entry into force and indefinite validity, article 73 of the LPGE for 2023 modifies the application of the rule of effective use or exploitation, which allows the subjection in the Spanish territory of application of the tax (TAI) of those services that, in accordance with the rules referring to the place of realization of the taxable event, are understood to be carried out outside the Community, but whose effective use occurs there:

  • It is eliminated when it comes to services between entrepreneurs in those sectors and activities that generate the right to deduction in order not to limit the international competitiveness of Spanish companies.

  • It remains in sectors that do not generate such a right, such as the financial and insurance sectors.

  • Its application is extended to intangible services to final consumers to guarantee taxation at destination. For example, the services provided by a lawyer established in the TAI to an individual resident outside the Community are subject to Spanish VAT if their Actual use occurs in TAI .

  • It is maintained in the case of transportation leasing services to avoid fraud situations and guarantee competition in this market.

• Update of the LIVA to the community customs regulations (articles: 18. Two and Three, 19. 5, 21. 3 and 7, 22. Seven and sixteen, 23, 24, 83. Two, 167 and sixth annex LIVA )

  With effect from the entry into force and indefinite validity, article 74 of the LPGE for 2023 updates several precepts of the LIVA for harmonization and adaptation of its content to the community customs regulations, referring to:

  • The taxable import event, including the completion of the non-customs deposit regime for previously imported goods applying the exemption provided for in article 65 LIVA .

  • Operations assimilated to imports, eliminating the mention of leaving exempt areas as a specific physical space.

    Exemptions on exports, adding the assumption that the goods are transported outside the Community by whoever holds the status of exporter in accordance with customs regulations.

  • Exemptions in operations assimilated to exports, which will not include exports, intra-community deliveries or operations exempted by articles 20 and 20 bis LIVA Likewise, the exemption of services provided by stevedoring professionals in their own name in favor of stevedoring companies that, in turn, provide them to the owners of the operation of certain vessels.

  • Exemptions relating to temporary deposit situations and other situations, which will not include exports and similar operations, as well as operations exempted by article 20 LIVA .

  • Exemptions relating to customs and tax regimes, eliminating mentions of the Customs transformation regime and including the free zone regime.

  • The tax base of imports, including its calculation in the case of goods that leave the warehouse regime other than the customs regime when the import taxable event is determined.

  • The settlement of VAT on imports, adding the assumption that the customs declaration is submitted in another Member State, in which case it will be based on the information received from it.

• Reversal of the passive subject (article 84. One. 2, seventh annex LIVA )

  With effect from the entry into force and indefinite validity, article 75 of the LPGE for 2023 introduces the following changes to the reverse charge mechanism:

  • It extends its application to deliveries of waste and waste of plastic and textile material, and the purchasers of said goods must pay the VAT of these operations.

  • Excludes from its application, starting to enter VAT the service provider, to:

    1. the leasing services of subject and non-exempt properties carried out by persons or entities not established in the TAI in order for them to benefit from the general deduction and refund procedure.

    2. intermediation services in the leasing of real estate carried out by businessmen or professionals not established in the TAI to guarantee the collection of VAT and reduce administrative burdens when the lessor provides exempt leasing services and, in general, must not submit self-assessments for this tax.

• Electronic commerce (article 68. Four LIVA )

  With effect from the entry into force and indefinite validity, article 76 of the LPGE for 2023 makes a series of technical adjustments to:

  • Define more precisely the location rules for intra-Community distance sales of goods and the calculation of the limit of 10,000 euros that allows continuing to be taxed at source.

  • Specify that, for the threshold to be applied, the supplier must be established in a single Member State and the goods must be shipped from said Member State.

• Procedure to recover VAT on bad debts (article 80. Four and five LIVA )

  With effect from the entry into force and validity indefinitely, article 77 LPGE for 2023 modifies some aspects of this procedure for its better adaptation to the Community Regulation:

  • The modification of the tax base is allowed in the case of insolvency proceedings declared by a court in another Member State to which Regulation ( EU ) 2015/848 is applicable. In this way, community jurisprudence (case 756/19, Ramada Storax SA ) and administrative doctrine are incorporated into LIVA .

  • The period for the modification will be two months from the end of the equivalent period in the bankruptcy legislation of the Member State for calling creditors.

  • In the case of bad debts (art. 80.Four LIVA ):

    • The minimum amount of the tax base is reduced when the defaulting recipient is a final consumer (it goes from 300 to 50 euros VAT excluded).

    • Possibility of replacing the judicial claim or notarial requirement prior to the debtor with any other means that reliably accredits the claim for collection from this debtor.

    • The period to recover the VAT is extended to 6 months from the moment the credit is declared uncollectible, including a transitional regime so that entrepreneurs whose modification periods have not expired can benefit from the new period. date January 1, 2023.

• 4% reduced rate for feminine hygiene products (items: 91. One. 1. 6 b) and 91. Two. 1. 7 LIVA )

  With effect from the entry into force and validity indefinitely, article 78 of the LPGE for 2023 establishes a reduction in the rate applicable to tampons, pads and panty liners, condoms and other non-medicinal contraceptives , which now pay taxes from 10% to 4%.

• Extension of the exclusionary limits of the simplified regime and special regime for agriculture, livestock and fishing (Thirteenth transitional provision LIVA )

  With effect from January 1, 2023 and indefinite validity, article 79 of the LPGE for 2023 extends for the year 2023 the limits for the application of the simplified regime and the special agricultural regime, livestock and fishing, similar to the measure adopted regarding the objective estimate in Personal Income Tax .

  Therefore, the general exclusive figures for the 2022 financial year will be the following:

  1. Simplified regime:

     • Volume of income in the immediately preceding year exceeding 250,000 euros for all economic activities, except agricultural, livestock and forestry.

     • Volume of purchases of goods and services in the immediately preceding year, excluding acquisitions of fixed assets, greater than 250,000 euros.

  2. Special regime for agriculture, livestock farming and fishing:

     • Volume of purchases of goods and services in the immediately preceding year, excluding acquisitions of fixed assets, greater than 250,000 euros.

• XXXVII Copa América Barcelona

  The thirty-sixth Final Provision, which establishes the tax regime for this event, points out several benefits in the VAT , among which the following stand out:

  • The refund of the tax incurred on operations related to this event to entrepreneurs or professionals established outside the Community without requiring the requirement of reciprocity.

  • The refund of VAT on a monthly basis for entrepreneurs not established in the TAI , the organizing entity, the participating teams and legal entities residing in Spain constituted on the occasion of the event.