Finally, after a few months of delay, last Friday Royal Decree-Law 7/2021 was published in the Official Spanish Gazette by which the EU Directives 2017/2455 and 2019/1995 that regulate the treatment of VAT in electronic commerce are transposed into the Spanish legal system, with effect from July 1, 2021.

In particular, according to the new regulations, sales of goods and services contracted ‘online’ by Community consumers supplied by companies from another Member State or a third country are subject to VAT in the Member State of arrival, thus consolidating the generalization of the principle of taxation at destination in cross-border VAT transactions.

The regulation is certainly complex requiring several readings in order to understand it.