Home / Blog / Deadline to decide if the companies want to join, continue or exit to some systems

Deadline to decide if the companies want to join, continue or exit to some systems

17 de November de 2020

The 30th of November is the deadline set by Spanish Tax Authorities to decide if the companies want to join, continue or exit to some systems, with effects to 2021 year:

Monthly refund registry (REDEME)
The special system of Import VAT
Voluntary refusion to Immediate Supply of Information on VAT (SII)

Monthly VAT refund regime (REDEME)

It is a voluntary system where the main advantage is a monthly VAT refund. The taxpayer doesn’t have to wait until the end of the year, IN January of every year, to request the annual VAT refund.

Companies must qualify with some requirements to choose this system:

Staying up to date with your tax obligations.
Not being in the case which could give rise to revocation of the Tax Code (NIF) explained in RGGI art. 146.1.b), c) and d).
Not being in the case which could give rise to the precautionary withdrawal in the monthly refund register of RGGI.
Not carrying out activities which are taxed in the simplified system.

Companies which choose this system must submit monthly VAT returns. Automatically, they will have to report to Tax Authorities their invoice registers, according to immediate supply of information (SII) specifications.

Taxpayers included in the monthly refund regime will be obliged to remain in it at least during the year for which inclusion was requested.

The special regime of import VAT

The main objective of this regime is to pay to Tax Authorities the import VAT in the same VAT return, avoiding shortness of cash.

Companies that could apply this regime should meet some of the following requirements:

Companies with the volume of operations exceeding during the immediately preceding calendar year 6,010,121.04  euros.
Companies who have opted for the monthly refund registry (REDEME).
Companies who apply the special VAT regime of the group of entities.

In short, entities that can opt for this regime are those required to submit VAT returns on a monthly basis.

Voluntary refusion to immediate supply of the information (SII)

The SII basically consists of the electronically sending of invoices registries from the VAT books. To do this, the taxpayer must send to Tax Authorities invoice details electronically and using this information the different VAT books will be configured, practically in real time.

The collective that will be subject to the compulsory use of the SII is made of taxpayers who are subject to submit VAT return on a monthly basis:

Registered with REDEME (Monthly VAT Return Registry)
Big Companies (turnover of over 6.010.121,04 euros)
VAT Groups (REGE)

In addition, any other taxpayer wishing to voluntarily apply SII may do so.

Parties opting into SII must comply with the supply of invoicing records during the months of the calendar year they have opted in to.

Once this is fulfilled, parties may opt-out of the system in the tax register declaration (form 036).

 

Elena Ramírez

Tax Partner &
Director at the International office

RELATED POSTS

Reasons to invest in Andorra: Kreston Iberaudit and Valgianni make it easier

When embarking on a new business venture in another country, it is very important to know how the market works. Being aware of current legislation and commercial regulations are essential issues to be able to start a business outside of Spain, especially if that country [...]
See more

KRESTON IBERAUDIT RE-ELECTS ITS BOARD TO KEEP GROWING

We rely on those who have brought us this far. That is why, at the Kreston Iberaudit Partners’ Meeting, we unanimously approved the renewal of our Board of Directors, re-electing of our main leaders.
See more

EXIT TAX

Law 11/2021, of July 3, on measures to prevent and fight against tax fraud (among others), takes a further step in the transposition of Directive (EU) 2016/1164, of the Council, of July 12; establishing rules against tax avoidance practices that directly affect the functioning of [...]
See more

Newsletter

Don't miss out on what's new in the sector!

Newsletter

By submitting this form, you agree to the Kreston Iberaudit privacy policy below.

Purposes: Sending our commercial newsletter and informative and advertising communications about our products or services that may be of interest to you, including by electronic means.
Rights: You may withdraw your consent at any time, as well as access, rectify, delete your data and other rights at oficina.coordinadora@kreston.es .
Additional Information: You can find more information on the Privacy Policy link.
Consentimiento(Required)
Boletin(Required)
This field is for validation purposes and should be left unchanged.