A law published in Spain’s official state bulletin on 21 December 2024 introduces new rules on the collection of VAT in transactions involving petrol, gas oil and biofuels.
The measures, which apply as from 1 January 2025, are designed to reduce the VAT fraud in “missing trader” schemes. Under these schemes, the last taxpayer extracting the products from a tax warehouse simultaneously accounts for and deducts VAT and charges VAT upon their sale to the customer. The VAT is never collected by the tax authorities as the trader disappears before filing any return, while the customer proceeds with the deduction of the VAT charged by the “missing trader.”
The new law provides as follows:
Taxpayers operating in the energy sector should become familiar with the measures as the new obligations and control mechanisms will give the tax authorities more visibility on affected supplies, as well as direct access to information allowing better monitoring of relevant transactions.
Verònica Targa
BDO in Spain
The measures, which apply as from 1 January 2025, are designed to reduce the VAT fraud in “missing trader” schemes. Under these schemes, the last taxpayer extracting the products from a tax warehouse simultaneously accounts for and deducts VAT and charges VAT upon their sale to the customer. The VAT is never collected by the tax authorities as the trader disappears before filing any return, while the customer proceeds with the deduction of the VAT charged by the “missing trader.”
The new law provides as follows:
- The removal from the tax warehouse is deemed to be carried out by the last trader removing the products from the warehouse or the tax warehouse operator if it is also the owner of the goods.
- A guarantee must be provided to the tax authorities to cover the VAT that would be charged on the subsequent sale to the customer. The legislation sets the amount at 110% of the VAT related to the acquisition of petrol, gas oil and biofuels carried out in the two immediately preceding months, unless the relevant taxpayer (last trader or holder of the tax warehouse):
- Is an Authorised Economic Operator as defined in the customs legislation; or
- Holds “reliable operator” status, which is granted if the taxpayer meets the following requirements:
- Is included in the register of extractors;
- Has a volume of extractions during the previous calendar year of at least 550 million litres of petrol, gas oil and biofuels;
- Has carried out transactions as a wholesale operator during the previous three years; and
- Meets the financial solvency requirements in relevant EU regulations (i.e., article 39 of Regulation (EU) 952/2013 and article 26 of the Implementing Regulation (EU) 2015/2447 of 24 November 2015).
- The tax warehouse operator will be jointly and severally liable for the VAT if it authorises removal of the products without ensuring that the last trader is either an AEO or a reliable operator or that a sufficient guarantee exists to cover the potential liability.
- The tax warehouse operator and the last trader extracting the goods from the warehouse must file monthly VAT returns and report their transactions to the Immediate Supply of Information System (SII).
BDO Insight
Taxpayers operating in the energy sector should become familiar with the measures as the new obligations and control mechanisms will give the tax authorities more visibility on affected supplies, as well as direct access to information allowing better monitoring of relevant transactions.Verònica Targa
BDO in Spain