In July and August, two delegated regulations were published (Delegated Regulations 2018/1063 and 2018/1118, respectively), amending Delegation Regulation (EU) 2015/2446, supplementing the Union Customs Code.
Without entering into a full analysis, the following three amendments are notable:
Definition of “exporter”: The conditions for being an exporter are limited to the essential requirements for the functioning of the export procedure, to allow greater flexibility in the choice of the person which may act as exporter, which will facilitate commercial relationships.
Exchanges with special fiscal territories: Simplified procedures are established (customs formalities and controls) for exchanges between parts of the customs territory in which the VAT Directive applies. These procedures will also apply between parts of the customs territory in which the Directive does not apply (i.e. the Canary Islands in Spain’s case), if they occur in the same member state.
Financial solvency: In relation to the conditions for a reduction of the level of the comprehensive guarantee and the guarantee waiver, liquidity has been taken out as a stand-alone condition for evidencing the operator’s solvency. In this respect, customs authorities must also take other elements into account, such as assets easily convertible.
New prepayment and corporate income tax return forms and new country by country reporting form
On September 14, 2018, the Official State Gazette (BOE) published Order HAC/941/2018, of September 5, 2018, amending the orders approving the forms for corporate income tax prepayments (form 202 and form 222), the general corporate income tax return form (form 200) and country by country reporting form (form 231). The most notable of these amendments were:
Amendments to forms 202 and 222(prepayments):
It exempts private equity entities from the minimum prepayment applicable to large companies. This amendment will not apply, however, to prepayments with reporting periods that commenced before July 5, 2018.
It includes the specific provisions (in relation to periods for self-assessment, payment and direct payments) contained in the provincial legislation for the Basque Country and Navarra for taxable persons subject to provincial legislation that are taxed jointly by central government and the provincial government.
In relation to form 200 (corporate income tax return) it has been technically enabled to choose the option for the government to use 0.7% of the gross tax liability for activities in the public interest deemed to serve the welfare of the general public. The option will only be available to taxpayers whose tax period ended after the entry into force of the General State Budget Law for 2018 (July 5, 2018).
The amendments to form 231, the country by country reporting form, are to include those introduced by the Corporate Income Tax Regulations in relation to the eligible entities that have to file country by country reports from January 1, 2019.
Canary Islands introduces SII (immediate supply of information) system in relation to Canary Islands general indirect tax
On August 7, 2018 the Canary Islands Official Gazette published Decree 111/2018, of July 30, 2018, amending Decree 268/2011, of August 4, 2011 approving the Regulations on management of the taxes under the Economic and Tax Regime for the Canary Islands, in which the most notable amendment is the introduction of the immediate supply of information (SII) system for the purposes of the Canary Islands general indirect tax.
See our Canary Islands Tax Commentary 2-2018 Todas las claves del sistema de Suministro Inmediato de Información en el ámbito de IGIC, available HERE.
Approval given to Protocol amending Belgium-Spain tax treaty
On August 2, 2018 the Official State Gazette (BOE) published the Protocol amending the Belgium-Spain tax treaty to update references to the competent authorities included in the treaty.