Start of activity

The regulations governing the Value Added Tax configure the development of economic activity in two stages . A first stage in which the preparatory acts are carried out, which consist of the acquisition of goods and services to use in the economic activity. And a second stage in which the deliveries of goods and provision of services that constitute the object of the economic activity are carried out on a regular basis.

For the purposes of determining when the start of the activity occurs, it must be taken into account that, in the regulations governing the census declaration , the start of a business or professional activity will be deemed to have occurred from the moment in which any deliveries, services or acquisitions of goods or services are made, collections or payments are made or labour personnel are hired, for the purpose of participating in the production or distribution of goods or services.

Without prejudice to the foregoing, for the purposes of Value Added Tax, business or professional activities shall be deemed to have commenced from the moment the acquisition of goods or services is made with the intention, confirmed by objective elements, of using them for the development of such activities. Those who make such purchases will from that moment on have the status of businesspeople or professionals for the purposes of the aforementioned Tax.

Business owners or professionals who, according to the regulations governing Value Added Tax, are subject to the same, are required to submit a census declaration regarding the beginning, modification or cessation of the activities that determine their subjection to the Tax.