In order to know if the sales transactions being made over the Internet are subject to value-added tax (VAT) or asset transfer tax, the first thing to be done is to determine if such transactions are a sale taking place between individuals or if the seller is a business owner or professional in the exercise of his or her activity.
In the case of a sale involving secondhand goods between individuals, the operation would be considered not to be subject to VAT, but it would, however, be subject to the asset transfer tax. This tax must be paid voluntarily by the party purchasing the goods, applying the tax rate corresponding to the kind of good being transferred. In the case of personal property, said rate is 4%.
In contrast, if the transfer is being conducted by a business owner or professional in the exercise of his or her activity, where the transferee is an individual, regardless of whether or not this individual is established in the territory in which the tax is applied or in another EU Member State, the VAT shall be paid at the corresponding rate in Spain.
Nevertheless, should the value of the transactions entered into with individual transferees established in another EU Member State exceed the limit established by each country, the business owner or professional that is transferring the goods will have to be registered in said Member State and pay the VAT at the rate established in that country.
It should finally be pointed out that can be selected voluntarily the application of the tax rate corresponding to the country of destination when the limit has not been exceeded. This is particularly because this tax rate is lower than the tax rate applied in the member state in which the business owner or professional resides.
For further information about indirect taxation, please do not hesitate to contact our team.