Equivalence surcharge [Form 036]

This is a mandatory regime for retail traders, which is automatically applied when the activity begins and which cannot be waived. It is a regime compatible with all others. For operations carried out under this regime, there is no obligation to submit VATdeclarations.

The special regime of the equivalence surcharge (box 514 “high”) will apply to retail traders who are natural persons or entities under the income attribution regime in the Personal Income Tax, in which all its members are natural persons, who sell at retail articles or products of any nature not exempted in their regulatory regulations and who meet the requirements determined by regulation.

Example: the special regime of the equivalence surcharge applies to the economic activity of retail trade of furniture, classified under section IAE 653.1.

Failure to meet the aforementioned requirements will result in the cessation of the application of this special regime to the activity carried out (box 514 “cancellation”).

In the event that the taxpayer to whom this special regime applies carries out other business or professional activities subject to Value Added Tax, the retail trade subject to said special regime (box 515) will, in any case, be considered a differentiated sector of economic activity. See in the “Deductions” section of this same chapter the information regarding the provisional deduction percentage , for the purposes of article 111.2 of the VAT Law (box 586) in relation to this special equivalence surcharge regime.

For the purposes of the VAT Law , taxable persons who meet the following requirements will be considered retail traders:

1. To regularly make deliveries of movable property or livestock without having subjected them to any manufacturing, production or manufacturing process by themselves or through third parties.

   Those who have subjected the products of their activity, either themselves or through third parties, to any of the processes indicated in the previous paragraph will not be considered retail traders, in relation to the products they process, without prejudice to their consideration as such with respect to other products of a similar or different nature that they market in the same state in which they acquired them.

2. That the sum of the consideration corresponding to the deliveries of said goods to Social Security, to its Managing or Collaborating Entities or to those who do not have the status of entrepreneurs or professionals, carried out during the preceding year, had exceeded 80% of the total deliveries made of the aforementioned goods.

   The requirement established in the previous paragraph will not apply in relation to taxpayers who have the status of retail traders according to the regulations governing the Tax on Economic Activities, provided that any of the following circumstances apply to them:

   1. That they cannot calculate the percentage indicated in said paragraph due to not having carried out commercial activities during the preceding year.
   2. That it is applicable to them and they have not renounced the modality of signs, indexes and modules of the objective estimation method of the Personal Income Tax.