Regulations for e-commerce in Spain

Business start-up in Spain, Entrepreneurship, Legal in Spain Leave a comment   Published on par Jonatan Carbonell

Online stores have become a popular alternative and the preferred option for many entrepreneurs over the last few years. In the case of Spain, in order to carry out e-commerce you need to comply with a series of regulations. Do you want to know what they are? Read on to discover what’s new for 2022!

 

Why invest in e-commerce in Spain?

Are you thinking of starting an e-commerce business in Spain, but you still haven’t made up your mind? The statistics speak for themselves and here are three interesting facts:

According to the statistics web portal, Statista, e-commerce in Spain reflects great receptivity. This is demonstrated by the data analyzed in 2020, where approximately 23% of total purchases were made via an online platform.

On the other hand, in the last quarter of the same year, purchases invoiced through e-commerce in the country reached an all-time high, exceeding 14.5 million euros within the national territory.

If you are one of those who are interested in this business model, first it is important that you know the legal aspects that you must take into account to offer your products or services online. So, here we show you the 5 laws that you cannot overlook in Spain.

 

You may also be interested in: How to establish a branch in Spain?

 

Information Society Services and Electronic Commerce Law (LSSICE)

Any individual or legal entity that carries out economic transactions via the Internet must comply with this law. And you may wonder, what is its purpose? As simple as protecting the rights of consumers and users of products and services over the Internet.

All this, not to mention that it also helps to regulate communication in email marketing campaigns and the storage of cookies.

What happens if you break this law?

Spanish law establishes different economic sanctions in case of non-compliance with the LSSICE:

  • Minor penalties: 30,000 euros

  • Serious penalties: from 30,000 to 150,000 euros.

  • Very serious penalties: from 150,000 to 600,000 euros.

General Law for the Defense of Consumers and Users (Ley General para la Defensa de los Consumidores y Usuarios (LGDCU))

With the main objective of promoting transparent communication in online stores, the European Union established in 2014 the General Law for the Defense of Consumers and Users, which is why Spain is coupled to this regulation.

In this sense, one of the ways in which we seek to protect users is by informing them about aspects such as: shipping conditions, service provision, returns, commercial calls and customer service.

You may also be interested in: Insurance for foreigners in Spain

 

Retail Trade Management Law

Establishing the general legal regime for retail trade, regulating special sales and commercial promotional activity are the main priorities of this law.

In addition, a very important factor to highlight is the application of VAT in transactions made through the Internet. Understanding, in this way, that the VAT to be applied in online sales must be established according to the consumer’s country, and not the country in which the seller has its tax domicile.

Organic Law on Data Protection (LOPD)

As its name indicates, this law is responsible for protecting three basic aspects: the privacy, intimacy and integrity of the individual.

It also regulates the obligations of consumers during the data transfer process, thus guaranteeing the security and exchange of information.

In this way, to comply with the present law, it is necessary to register on the website of the Spanish Data Protection Agency and record the collection of data, and offers data deletion options in case the user does not want to continue providing them.

It should be noted that the privacy policy section, as well as the shipping and returns section and the information on cookies are mandatory.

What happens if you break this law?

Spanish law establishes different economic sanctions in case of non-compliance with the LOPD:

  • Minor penalties: from 601.10 to 60,101.21 euros.

  • Serious penalties: from 601,101.21 to 300,506.25 euros.

  • Very serious penalties: from 300,506.25 to 601,012.1 euros.

 

You may also be interested in: What’s new in the Spanish personal income tax return?

 

European Data Protection Regulation (GDPR)

This regulation is created with the purpose of complementing the LOPD and constitutes, according to the European Union, an essential measure that strengthens the rights of individuals in the digital era and facilitates economic activities.

The GDPR came into force in May 2016 and started to apply from 2018, a regulation that helps to put an end to fragmentation in different national systems and unnecessary administrative burdens.

 

The digital era has offered us multiple opportunities for growth and one of the most important is to venture into the business world. As you may have noticed, e-commerce in Spain can be quite profitable, but at the same time challenging; having to comply with a series of requirements, tax and legal regulations.

The positive side? In TAS Consulting we have a team of experts trained to advise you with your paperwork and help you achieve each of your goals.

 

Published on par Jonatan Carbonell

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