Tax Management Department Immediate Supply of Information on VAT Virtual Assistant & PORTADA Brussels, 19 of February Tax Management Department

Tax Management Department 1. SII: what is it? On-line VAT record-books generated by supplying the invoicing information to the Spanish Tax Agency´s Electronic office. Compulsory for large companies, VAT groups and Monthly VAT refund registered: 63.000 companies 80% total VAT invoicing in Spain Deadline for registration: four calendar days following the date of issuing /accounting of the invoice issued / received Information on the invoices is supplied through a web service using XML PORTADA Tax Management Department

Tax management Department 1. SII: objectives IMPROVEMENT IN VAT CONTROL: New control model based on almost “real time” information HELP FOR THE TAXABLE PERSON: 1st stage: Access to tax information on themselves declared by others also applying the SII (direct access through the Tax Agency´s web portal) 2nd stage: Help for VAT self-assessment when remitting the VAT return PORTADA Tax management Department

Tax Management Department Entry into force: 1 July 2017 Since then….what has happened? PORTADA Tax Management Department

1. SII: results COMPLIANCE DATA TOTAL July August Sept. Oct. Nov. Dec. Jan. Obliged to SII 54.033 54.33 56.336 Submitting SII 50.368 50.003 50.405 50.442 50.376 50.666 52.461 Compliance 93,2% 92,5% 93,3% 93,4% 93,8% 93,1% BUSINESS WITH TURNOVER > 60 MILLION EUROS 2.405 2.412 2.243 2.235 2.247 2.262 2.252 2.228 2.199 92,9% 94,1% 93,6% 92,6% 91,2% %PORTADA PAYMENT DEADLINE for VAT REFUNDS is REDUCED 14 DAYS 60% VAT refunds are paid in 10 days Tax Management Department

IMPROVEMENT OPPORTUNITIES 1. SII: problems PROBLEMS IDENTIFICATION OF CLIENTS AND PROVIDERS COMMERCIAL PRACTICE NOT IN ACCORDANCE WITH REGULATIONS UNKNOWLEDGE OF SII, INVOICING AND VAT IMPROVEMENT OPPORTUNITIES CENSUS UPDATE REGULATIONS UPDATE MORE INFORMATION: conferences, FAQs, mailbox, Forum PORTADA Tax Management Department

A big challenge: 54.126 companies Team with a multitude of functions 2. Virtual Assistant A big challenge: 54.126 companies Team with a multitude of functions 886 weekly consultations PORTADA Tax Management Department

Tax Management Department 2. Virtual Assistant Solution: use artificial intelligence 3 steps: 1º Analysis of questions and dialog design 2º Assistant training 3º Continous improvement with conversational auditing PORTADA Tax Management Department

Tax Management Department 2. Virtual Assistant PORTADA Tax Management Department

Tax Management Department 2. Virtual Assistant More than 300 daily accesses 1500 weekly accesses Publicity on the web PORTADA Tax Management Department

Tax Managment Department 2. Virtual Assistant PORTADA https://www2.agenciatributaria.gob.es/avaeat/AVDemo.nsf/Inicio?OpenForm https://www2.agenciatributaria.gob.es/soporteaeat/AsistenteVirtual.nsf/Inicio?OpenForm&ambito=Gestion Tax Managment Department

Tax Management Department Tax certainty V A T PORTADA Tax Management Department

Tax Management Department 3. Services Locator What is the Locator? This application answers the following questions: 1. Where is the place of supply of services? Article 43 – 59 Council Directive 2006/112/EC 2. Who is the taxable person? 3. Invoice with VAT or Reverse Charge? Services Locator PORTADA Tax Management Department

Tax Management Department 3. Services Locator Locator Example: A French Company organices a fair for a Spanish Company Fill in the following information: What service is it about? Cultural, artistic, sporting, scientific, educational entertainmet, fairs and similar services What type of service is provided? organization Supplier location PORTADA Member State different from Spain Customer condition Business Customer location Spain (Peninsula or Balearic Islands) Tax Management Department

Tax Management Department 3. Services Locator LOCATE OPERATION Where is the place of supply of the service? The operation is subject to VAT in Spain Who is the taxable person? T The customer must pay the VAT (reverse charge). He must be identified with VAT number and submit a recapitulative statement (form 349). PORTADA VAT is charged in the invoice? VAT is not charged in the invoice. Reverse charge mention must be included Tax Management Department

Tax Management Department 3. Services Locator Why the Locator? Services Locator Helping SME to pay VAT properly in their foreign trade operations Better understanding of changes from 1 January 2021 (COUNCIL DIRECTIVE (EU) 2017/2455 of 5 December 2017) First step to prevent double taxation? PORTADA https://www2.agenciatributaria.gob.es/soporteaeat/Localizador.nsf/Localizador?OpenForm Tax Management Department

THANK YOU FOR YOUR ATTENTION PORTADA Tax Management Department