Tag: VAT

Tax Advisor: Jurisprudential change: right to VAT deduction

In light of Supreme Court resolutions numbers 236/2023 and 237/2023, both dated February 23, 2023, the Central Administrative Economic Tribunal (TEAC) adjusts its previous position, adopting a jurisprudential perspective. It is established that the right to deduct VAT is inherent to the taxpayer, not being a tax option according to Article 119.3 of the General… Continue reading Tax Advisor: Jurisprudential change: right to VAT deduction

Tax Advisor: Anti-VAT Fraud Struggle in the EU: New Rules for Cross-Border Payments

Starting from January 1, 2024, new transparency rules come into effect to assist European Union member countries in the battle against Value Added Tax (VAT) fraud.   Focus on E-commerce and Its Challenges These rules will provide EU tax authorities with information on payments, enabling them to fraud etect VAT fraud more effectively. Special emphasis… Continue reading Tax Advisor: Anti-VAT Fraud Struggle in the EU: New Rules for Cross-Border Payments

Tax advisor: The Supreme Court and the principle of proportionality as a cornerstone in VAT tax penalties

The Supreme Court has reaffirmed the importance of the principle of proportionality, indicating that it not only guides interpreters of the law in modulating penalties but that legislators must also take it into account when establishing tax penalties. This doctrine may lead to the annulment of penalties by ordinary courts if a lack of proportionality… Continue reading Tax advisor: The Supreme Court and the principle of proportionality as a cornerstone in VAT tax penalties

Tax advisor:The National Court orders the refund of withholding taxes to foreign investment funds in Spain

The National Court has been resolving appeals filed by non-resident investment funds challenging the withholdings applied by the Tax Agency to dividends from Spanish companies. These withholdings, imposed at a rate of 15%, were deemed unfair compared to the 1% applied to similar institutions resident in Spain. As a result of the Supreme Court’s judgments… Continue reading Tax advisor:The National Court orders the refund of withholding taxes to foreign investment funds in Spain

Tax advisor: Fiscal Treatment of the Sale of shares in photovoltaic solar park development companies and its temporal allocation in the corporate income tax

Subsidiaries engaged in promoting photovoltaic solar parks are not considered holding companies, as they are involved in an economic activity. If these entities manage production resources or human capital to participate in the production or distribution of goods or services in the market, they may qualify for a tax exemption under Article 21 of the… Continue reading Tax advisor: Fiscal Treatment of the Sale of shares in photovoltaic solar park development companies and its temporal allocation in the corporate income tax

Tax advisor: The imposition of abusive agreements from a criminal perspective

Abuse of the majority in the adoption of agreements is punishable both from a civil or commercial perspective, when these exceed the normal limits of the exercise of the rights, causing damage to third parties (art. 7.2 of the Civil Code) and from a criminal perspective (art. 291 of the Criminal Code). Throughout this article… Continue reading Tax advisor: The imposition of abusive agreements from a criminal perspective

Tax advisor: Foreign Securities Holding Entities (ETVE): Considerations about the application of the ETVE regime

ETVEs are efficient corporate vehicles for investments abroad. These entities benefit from a special tax regime that significantly reduces the tax burden on foreign profits, which makes these vehicles highly attractive to international investors. However, the application of the special tax regime requires the fulfilment of several requirements. In the following, we will discuss the… Continue reading Tax advisor: Foreign Securities Holding Entities (ETVE): Considerations about the application of the ETVE regime

Tax advisor: EU Directive proposals and their impact on multinational companies’ taxation

The European Union has presented two directive proposals that could have a significant impact on the taxation of multinational corporations in Europe. Both proposals fall under the umbrella of BEFIT but differ in their objectives and scope.One of them pertains to the regulation of transfer pricing and aims to incorporate the principle of fair competition… Continue reading Tax advisor: EU Directive proposals and their impact on multinational companies’ taxation

Tax advisor:Analysis of the justification for applying the median in transfer pricing adjustment

In the opinion of the National High Court, the justification provided by the tax authority regarding the excessive breadth of the profit margins is not considered detailed enough to support the application of the median as explained. Therefore, this objection is accepted, and it is determined that the application of the lower point within the… Continue reading Tax advisor:Analysis of the justification for applying the median in transfer pricing adjustment