Spanish Tax Agency mailing campaign about an eventual no deal Brexit. The EORI problem

The Spanish Tax Management State Agency (AEAT) is mailing companies so to inform them about the implications of a no deal Brexit in the areas of Customs, VAT and Excises. Although of a general nature, the letter sent includes references to different web addresses where further information can be found, basically:

• The AEAT’s special site dedicated to the consequences of the Brexit and the Brexit mail address it has created so taxpayers can file its specific questions on this matter. 

• The site that the European Union has published for addressing the issues resulting from the withdrawal of the United Kingdom from the EU.

Also, a specific mailing is made to those companies which appear in AEAT’s database as carrying out import/export transactions in Spain under a British EORI, so to suggests that they may consider starting the procedure for its substitution by a new EORI, either Spanish or of any of the other remaining Member States (MS). As regards this matter the following considerations must be made:

• In case that the company selected option for its Spanish imports/exports is the use of the EORI issued by another MS, its previous linking by the Spanish Customs authorities to a Spanish tax Identification Number (the so called NIF) would be required, this being a very straightforward procedure . 

• Although the EORI number is regulated as unique at a European level, the application of a Spanish EORI number by a company holding a British one could still be possible since the granting of such application would be conditioned to the fact that the no deal Brexit eventually occurring. 

This unusual conditioned application is based in provision contained in article 20 of Royal Law-Decree 5/2019, of 1 of March, published at the Official Gazette of 2 March (RLD), as one of the specific measures which are contemplated for an eventual no deal Brexit scenario. 

Notwithstanding having acted as suggested by the Spanish tax authorities, our practical experience when having filed such a conditioned application for a Spanish EORI/linking to a Spanish NIF of a foreign EORI to substitute an existing British one, has been a rejection on the basis that no specific internal administrative procedure has been implemented yet for this purpose.

In IVA Consulta we are specialists in the compliance and tax advice of indirect taxes at international level. Our team can help you with VAT audits, proceedings and litigation before courts, dealing with incidences resulting from the Spanish e-notifications received for the tax authorities, keeping with the Immediate Information Supply obligations (SII) and much more.