An intra-community transaction is the purchase or sale of goods or the provision of services to a company situated in another country of the European Union. It is vitally important to note that a transaction may not be declared as an “intra-community transaction” unless both the company and the natural person are registered in the Register of Intra-Community Transactions. When you receive approval of your registration in the Register of Intra-Community Transactions, you are allocated an intra-community tax ID code which subsequently enables you to issue invoices excluding VAT.
Intra-community invoices may only be issued if they meet the following three requirements:
- The buyer and seller in the transaction must be a self-employed person or a company.
- Both must be registered in the Register of Intra-Community Transactions and an ID number must have been allocated to them.
- The transaction must not take place in the territory where the tax is applicable. This means that the purchase and sale is carried out in any of the 28 EU countries and is directed to another Member State subject to different tax arrangements.
The submission deadline varies according to the amount (€) of the intra-community transactions in Spain and the declaration must be submitted within the first 20 calendar days of the close of the corresponding period. According to the revenue of the company, the frequency of filing form 349 is detailed below:
- Monthly: When the total of the intra-community transactions exceeds the threshold of € 50,000.
- Bimonthly: At the end of the second month of a quarter, when the amount of the intra-community transactions exceeds € 100,000.
- Quarterly: When the general calculation of the provision of services and supply of goods does not exceed € 50,000.
- Annual: When the total supply of goods or provision of services in the year does not exceed € 35,000, and if the annual amount of the supply of goods does not exceed € 15,000.
It should be noted that, if the company does not carry out any intra-community transactions in Spain in the year, it is not required to submit form 349. It is very important to monitor transactions between Member States on a monthly basis, as any voluntary or involuntary omission of a record will be penalised by the Tax Authorities. If you would like further information about how to complete this form, our team of tax specialists is standing by to provide you with any assistance you may need in this regard.
Víctor Sáez
