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Practical manual VAT 2024.

Commencement or cessation of application of the special system

Regularizations to be carried out in the event of commencement and cessation of operations under the special regime:

  1. When an activity changes from the general regime to the special regime , the owner of the operation will be obliged to:

    • Enter the amount of compensation corresponding to the future delivery of natural products already obtained and not delivered on the date of the regime change.

    • Rectify the deductions corresponding to assets, except for investment assets, and services not consumed or used in whole or in part, effectively in the activity or operation.

  2. When an activity changes from the special regime to the general regime, the owner of the operation will have the right to:

    • Make the deduction of the fee resulting from applying to the value of the goods used for the activity, VAT excluded, on the date it stops applying the regime, the rates in force on said date, without taking into account investment goods or goods and services that have been used or consumed, totally or partially, in the activity.

    • Deduct the flat-rate compensation for natural products obtained from farms that have not been delivered on the date of the change of regime.

In both cases, you are required to prepare and submit an inventory which must include the natural products obtained and not delivered (for compensation) and the goods and services acquired and not consumed or used in whole or in part (for quotas).

The presentation of the inventory and the exercise of these rights shall be in accordance with the requirements and conditions established by regulation. Specifically, the presentation must be made within fifteen days from the day the application of the special regime begins or ends, and may be presented by electronically through the procedure enabled in the electronic headquarters for the presentation of the inventory of stocks due to the start or cessation of activity subject to special Value Added Tax (VAT) regimes.

For the regularization of the deductions of the supported quotas in the acquisition or importation of investment goods , the deduction proportion applicable during the period or periods in which the activity is covered by this special regime will be zero.