Tax Newsletter – December 2018
Spain -
A significant judgment on taxation of a nonresident who came to Spain to care for a sick family member headlines our December Tax newsletter, prepared by professionals in the Garrigues Tax Department. The newsletter also looks at recent Court of Justice of the European Union judgments in connection with corporate income tax and VAT, as well as key decisions and rulings, ruling requests and legislation.
Coming to Spain for family illness reasons does not make an individual a resident
A Murcia high court judgment concluded that a taxable person does not become resident in Spain where their temporary stay in Spain is for family reasons.
Judgments
- Corporate income tax.- A legislation that taxes dividends differently according to where the company receiving them is a resident is contrary to the free movement of capital
- VAT.- For VAT to be deductible, in the absence of the invoice, other proof of the acquisition of goods or services may be produced
- VAT.- Penalties for failing to meet minimum terms for telecommunications services are subject to VAT
- VAT.- The chargeable event for VAT purposes related to acting in the placement of a player occurs with each of the club’s payments to the agent not when the placement takes place
- Inheritance and gift tax and transfer tax.- The contribution of assets to the matrimonial property system is not a gift but a transfer subject to but exempt from transfer tax
Decisions and Rulings
- Requests for information.- The tax relevance of a request for information must be expressly explained when it does not arise clearly from the procedure
- Management procedure.- An audit of reported values may be carried out in a limited review procedure
- Review procedure.- The absence of standing to bring challenges for a taxable person in a procedure is remedied if the assessments are notified with information on the routes for challenges
- Review procedure.- A document prepared at the instance of a party does not have material value for the purposes of a special appeal for judicial review of final decisions
Ruling requests
- Information returns.- Form 179 only has to be filed by those who actually act as intermediaries in the supply of leased vacation properties
Legislation
- New tax law on housing and rental
- Form 900D to report changes to the cadaster for properties
- Objective assessment method for personal income tax purposes and simplified VAT rules for 2019
Miscellaneous
- The penalty regime in relation to form 720 (to report assets and rights held outside of Spain) is disproportionate
- The directive harmonizing and simplifying certain rules in the value added tax system for the taxation of trade between member states has been published
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