Where does BigBuy operate?
All purchases made at BigBuy are subject to the Spanish and EU legislation, as well as any other legal provisions affecting international transactions. The purchasing system is subject to the Spanish legislation so all selling operations will be considered as made in Spain.
Do BigBuy's prices include VAT or other taxes?
No. BigBuy sells in some regions that are exempt of VAT (value-added tax) so it is not included in the advertised prices. We are aware that our customers are mainly companies or professionals and may be able to deduct it. The VAT will be added, as appropriate, at the final step of the shopping cart.
TRANSACTIONS BETWEEN COUNTRIES OF THE EUROPEAN UNION:
Do companies from EU countries have to pay VAT in their purchases?
Since BigBuy operates from Spain and the invoicing company has an intra-community VAT number, all purchases made by companies resident in any EU country with a VAT number (intra-community VAT number) are exempt from paying VAT. For this, it is necessary that our system verifies the validity of the VAT number through the VIES platform.
Do companies from EU countries with a VAT number have to pay VAT if the delivery of the products takes place in Spain?
Yes, in the case that the products do not leave the Spanish territory, in Spain we are obliged by law to charge VAT.
Do companies from EU countries without a VAT number have to pay VAT?
Yes, companies and natural or legal persons resident in EU countries without a VAT number have to pay VAT.
Is it necessary to pay VAT to BigBuy in dropshipping shipments to customers of the EU with a VAT number who have not been charged VAT by me?
Option 1: If your company is in Spain, you have to pay VAT, since we are also in Spain and it is compulsory to invoice VAT between Spanish companies regardless of the products' destination. Nevertheless, the VAT you pay to BigBuy is input VAT that you can deduct and recover.
Option 2: If your company is in any country of the European Union (except Spain) and has a VAT number, you do not have to pay VAT.
Option 3: If your company is in any country of the European Union (except Spain) and you do not have a VAT number, you have to pay VAT.
Do non-EU companies have to pay VAT?
Purchases made by companies, natural or legal persons who are residents of non-EU countries and with deliveries outside the European Union are exempt from VAT, as they will be considered as exports. Alternatively, if deliveries are made within Spain or the rest of the European Union, VAT will need to be paid.
Apart from VAT, are there other taxes that need to be paid if the delivery takes place outside the European Union?
For this purchase/shipment method, the customs system may apply further tax burdens as appropriate depending on each country.
Is it necessary to pay VAT to BigBuy in dropshipping shipments to customers of non-EU countries who have not been charged VAT by me?
You should not pay VAT, as this is an export.
How to create an invoice for exports outside the European Union
TRANSACTIONS WITH THE CANARY ISLANDS, CEUTA AND MELILLA:
Do companies and natural or legal persons resident in the Canary Islands, Ceuta and Melilla have to pay VAT?
Owing to their particular tax scheme, the Canary Islands, Ceuta and Melilla are considered as non-EU territories. Therefore, any purchases whose invoices and deliveries take place in this geographical area will not pay VAT.
Do companies and natural or legal persons resident in the Canary Islands, Ceuta and Melilla have to pay VAT if the delivery of the products takes place in mainland Spain, the Balearic Islands or any other country of the European Union?
Yes, in the case that the invoice is issued in the Canary Islands, Ceuta and Melilla but the products do not leave the EU territory, in Spain we are obliged by law to charge VAT.
Apart from VAT, are there other taxes that need to be paid if the delivery takes place in the Canary Islands, Ceuta and Melilla?
For this purchase/shipment method, the customs system may apply further tax burdens as appropriate depending on each region.
Is it necessary to pay VAT to BigBuy in dropshipping shipments to customers of the Canary Islands, Ceuta or Melilla who have not been charged VAT by me?
You should not pay VAT, as this is considered to be an export.
Please be aware that if you are not registered as a Spanish exporter you will not be able to make dropshipping shipments to the Canary Islands, Ceuta or Melilla. The only way to make these shipments is to send the order to your shop, and then for you to send it to your client. If you send an order to any of the above destinations in error, your order will be cancelled and refunded.
SALES EQUALIZATION TAX (only in Spain)
What is the sales equalization tax and who is subject to it?
The sales equalization tax is a special tax scheme. It is compulsory for retailers who do not make any transformation in the products they sell, that is, for self-employed dealers selling to the end customer. Both self-employed natural persons and joint ownership are subject to SET.
What are the implications of the sales equalization tax?
For retailers it involves paying a VAT rate that is slightly higher in return for not having to submit VAT returns to the Tax Authorities. This way, you pay VAT directly to your supplier, which notably simplifies the process. It only applies to goods or products, not to services. It is the retailer who must inform the supplier (BigBuy) of its tax scheme for the sales equalization tax to be included in its invoices.
In compliance with the Spanish Royal Decree-Law 20/2012 on measures to guarantee budget stability and promote competition, which includes a VAT rise, the sales equalization tax rates applicable from 1st September 2012 are are following::
•5.2% for items with a general VAT rate of 21%;
•1.4% for items with a reduced VAT rate of 10%; and
•0.5 for items with a super-reduced VAT rate of 4%.
How can the sales equalization tax be paid at BigBuy?
The advantage for those who use this special regimen is that BigBuy's website is set up for this form of tax. In the process of creating an account in BigBuy, you must select the "Yes, I am subject to R.E. (equalisation tax)" box. If you have already created an account, contact the BigBuy Administration Department.