Spain Introduces New VAT Cash Accounting Scheme and Changes to Certain VAT Deadlines
11/29/2013

Spain has introduced a new Special VAT Cash Accounting Scheme. The new scheme is designed to support entrepreneurs. The changes introduced by the recent amendment will be effective 1 January 2014, reports Nair & Co.’s International Tax team.

Online PR News – 29-November-2013 – Spain VAT Cash Accounting Scheme, Spain - VAT cash accounting regime, Spain includes changes to VAT – Spain has introduced a new Special VAT Cash Accounting Scheme. The new scheme is designed to support entrepreneurs. The changes introduced by the recent amendment will be effective 1 January 2014, reports Nair & Co.’s International Tax team. Similar schemes are enforced in other European Union countries; however this is completely new to Spain.

The new scheme does not apply to taxpayers with annual turnover exceeding €2,000,000 or those who receive over €100,000 in cash payments from a single source in one calendar year.

Major highlights of the changes are outlined below:

Special Cash Accounting:

* Taxpayers may opt-in for the new special VAT cash accounting system. The due dates by which the election has to be made have been prescribed.
* The compliance requirements for registering need to be completed in the invoicing record books by the taxpayer applying to the new system. Moreover, regardless of whether the taxpayer has opted for the special regime or not, he/she must state invoices received under the special regime in invoicing record books.

VAT return changes:
* New changes also do away with the exception which allowed submission of VAT returns for July in September; henceforth such VAT returns must be completed in August.

Companies operating in Spain are advised to carefully review policies related to VAT to identify potential risk and taxation exposure, suggests Nair & Co.’s International Tax team.

For more information about doing business overseas or to know more about our International Tax Services please contact us.

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