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VAT practical manual 2021.

Frequently asked questions raised in this chapter

1. When is an activity considered independent for the purposes of applying this regime?

When it is specifically included in the Ministerial Order that regulates the simplified regime.

2. How is the staff employed in the simplified VAT regime computed?

Both non-salaried and salaried employees are quantified according to the rules of the instruction for the application of signs, indexes or modules in the IRPF .

3. How do you renounce the simplified regime?

The resignation will be made through a census declaration (forms 036 or 037), at the time of submitting the start of activity declaration or, where appropriate, in the month of December prior to the calendar year in which it must take effect. These will cover a minimum period of three years and will be understood to be extended for each of the following years, in which the regime could be applicable, unless it is revoked in the month of December.

Tacit waiver is also possible when the self-assessment for the first quarter of the year is submitted on time, applying the general regime, or when the first self-assessment is submitted on time, applying the general regime, for the quarter immediately following the start of the activity, if it began at the beginning of the year.

4. What forms must be submitted by entrepreneurs or professionals who carry out activities under the simplified regime?

Entrepreneurs and professionals who carry out activities under the simplified regime must submit form 303 for self-assessment of VAT on a quarterly basis. In this way, all the cases of filing self-assessments that are incumbent on taxpayers with periodic declaration obligations are grouped into a single VAT self-assessment form 303, with the sole exception of entities that apply the special regime for groups of entities and the special regimes for telecommunications, radio, television or electronic services.

In addition, they will have to submit an annual summary declaration, form 390, unless, in accordance with the provisions of article 71 of the VAT Regulations , by Order of the Minister of Finance and Civil Service, they are exempt from this obligation. Currently, entrepreneurs or professionals who pay taxes only in common territory and are covered by the simplified regime exclusively and/or who also exclusively carry out the activity of leasing urban real estate (or activities for which there is no obligation to submit periodic self-assessments) are exempt from filing Form 390.

5. What is the deadline for submitting Form 303 and Form 390 annual summary?

The submission of the self-assessment and, where applicable, the payment of form 303 will be made within the first twenty calendar days of the month following the end of the corresponding quarterly settlement period, except for the last settlement period (4Q), which must be submitted during the first thirty calendar days of the month of January. If applicable, you must also submit the annual summary declaration form 390 (the submission of the annual summary declaration may not be required if so established by Order of the Minister of Finance and Public Administration) during the first thirty calendar days of the month of January.

In the event that the expiration of the term coincides with a Saturday or non-working day, it will be understood that the term ends on the first following working day.

6. What amounts can a business owner who has two activities deduct, one that is taxed under simplified tax and the other under equivalent surcharge?

  • The fees incurred or paid in the acquisition or importation of goods and services used in the simplified activity sector will be deductible in accordance with the regulations governing this regime.

  • The fees incurred in relation to goods and services used in the sector in the form of an equivalence surcharge will not be deductible to any extent.

  • The fees incurred or paid in relation to goods and services used simultaneously in both differentiated sectors will be deductible by 50 percent for the purposes of the simplified regime.

7. Is it possible to reduce the amount to be paid in the event of disability of the policyholder?

Yes. A reduction in the indexes or modules may be requested in cases where the owner of the activity is temporarily incapacitated and has no other personnel employed.