The Spanish Tax Agency has issued a release announcing Royal Decree-Law 7/2021 of 27 April 2021, which was published in the Official Gazette on 28 April 2021. The Decree-Law provides for the transposition of Council Directive (EU) 2017/2455 regarding e-commerce and comes into force on 1 July 2021.
As previously announced by the Tax Agency, this includes the new One Stop Shop (OSS), which replaces the mini One Stop Shop (MOSS) and covers an expanded scope of supplies including Intra-Community distance sales of goods and Distance sales of goods imported from third (non-EU) countries or territories. The Decree-Law also provides for the elimination of the exemption on imports of low value goods (EUR 22) and for the introduction of the new Import One Stop Shop (IOSS) for shipments with a value not exceeding EUR 150.
Changes are also made regarding intra-community supplies of goods sold via e-commerce so that the destination principle applies, i.e., supplies are subject to VAT in the Member State of the recipient. However, for smaller-scale businesses not exceeding an EU sales threshold of EUR 10,000, including both online sales of good and services, it is provided that the business may be taxed in the Member State of establishment rather than the Member State of the recipient.
In addition to the e-commerce changes, Royal Decree-Law 7/2021 also provides for an extension of the 0% VAT rate on imports of medical supplies for COVID-19 that applies from 1 May 2021 to 31 December 2021. The list of medical supplies qualifying for the 0% rate is also updated in the annex to the Decree-Law.