2.2.10. FAQ AEAT Foral Provinces

1.21. Does a taxpayer with a tax residence in a Forals Tax Agency affect the SII?

The SII is applied in the terms established in the forals regulations.

During the year 2017: Those entrepreneurs with tax residence in a Forals Tax Agency whose total volume of operations in the previous year (2016) had exceeded 7 million euros, of which 75% or more had been made in common territory, the application was SII in accordance with state regulations.

As of the 2018 fiscal year:

• Those entrepreneurs with a tax residence in the Navarre Treasury, whose total volume of operations in the previous year had exceeded 7 million euros, of which 75% or more had been made in common territory, will apply the SII in accordance with the state regulation.
• Those entrepreneurs with a tax residence in a Basque Regional Treasury, whose total volume of operations in the previous year had exceeded 10 million euros, of which 75% or more had been made in common territory, will apply the SII in accordance with the state regulation.

1.22. To which tax administration (common or Foral Province) must the invoicing records be presented to the SII that operate in common and regional territory?

Taxpayers must present the formal obligations to which they are obliged according to their respective regulations, before the competent State or Foral Administration for the reason of the territory, according to the criterion of competence for verification and investigation.

With respect to fiscal year 2017, the inspection authority for the Value Added Tax corresponds to the State when:

1. The taxpayer has his tax residence in common territory and his volume of operations in the previous year is less or equal to € 7 million.
2. The taxpayer has his tax residence in common territory and his volume of operations in the previous year is superior to 7 MM € whenever they realize some percentage of operations in common territory.
3. The taxpayer has his tax residence in a Foral territory and his volume of operations in the previous year is superior to 7MM € provided that the percentage of operations carried out in common territory is equal to or greater than 75%.

As of fiscal year 2018, inspectorate competition for those taxpayers who must pay in proportion to the volume of their operations carried out in common and Basque territory, will correspond to the State when:

1. The taxpayer has his tax residence in common territory and his volume of operations in the previous year is less than or equal to € 10 million.
2. The taxpayer has his tax residence in common territory and his volume of operations in the previous year is superior to 10 MM € provided that the percentage of operations carried out in Basque territory is not equal to or greater than 75%, or 100% in the case of entities subject to the special regime of a group of entities, in which case the competence would correspond to the competent Foral Government for the reason of the territory.
3. The taxpayer has his tax residence in a Foral territory and his volume of operations in the previous year is superior to 10MM € provided that the percentage of operations carried out in common territory is equal to or greater than 75%.