The horizon is clearer for self -employed and small businesses, since the end of the obligation to present the declaration of VAT each quarter is coming.
The reason for the elimination of this obligation, The European Union
The approval of the European Directive 2020/285, which entered into force the 18 February 2020, implies that, from exercise 2025, The self -employed and small entrepreneurs who invoice less than 85.000 euros per year could be exempted from having to pay VAT quarterly, Online with similar existing regimes in other European Union countries.
Self -employed with lower income than 85.000 euros can choose between the general VAT regime (The current) or accept the special VAT franchise regime. This last alternative would imply that they should not issue invoices with VAT or declare it later. To be able to take advantage of this VAT franchise, self -employed should not overcome 85.000 euros of business volume in the natural year before the application. Nevertheless, The Directive gives the States the freedom to extend this period to the previous two years.
Will Spain comply with the regulations?
From the Department of Tax Management of Finance, They claim that the Tax Agency He is already working With self -employed organizations to launch a new tax regime that would allow thousands of self -employed. The idea that is being considered is that all self -employed workers who invoice less than 85.000 euros (100.000 euros if they carry out intra -community operations) just have to submit an annual statement of their sales to demonstrate that they meet the limits so as not to be subject to this indirect tax.
How long has Spain to implement this measure?
Europe has established that the countries of the European Union must implement this measure for the 1 January 2025. However, It is not uncommon for states, including Spain, are delayed in the transposition of regulations, risking to receive sanctions from Brussels.
Laura's opinion, Mercantile Advisor in Almería
It is clear that if the businessman does not have an impact or can deduct VAT quotas, This VAT franchisee system will be beneficial for those self -employed whose own labor involves most of its work cost, since these have very few expenses to deduce and, besides, will reduce your management expenses.
In contrast, the businesses that must assume the most expenses For their activity they will be the least benefited because they would lose the right to all their deductions. In this sense, And as we usually recommend, The key is to study each case and Analyze how much VAT supports and how much each autonomous, and act or advise according to it, According to your income and expenses.
In addition to the above and as a personal reflection, A priori I consider this an effective tool by the Treasury for the eradication of the submerged economy, since, If before there were those who considered paying a product or service with the corresponding invoice (With VAT) and consequently declare it, since the price increased, Now with total security we will ask for the corresponding invoice (since we will have greater coverage in case of having to claim something from the company without an increase in cost) And in most cases these expenses will be declared with the consequent information provided to the Treasury, since the perceived income will have to be declared by having been invoiced.
How will this change affect your business? What measures should you take to adapt to this opportunity?
In Vázquez and Manchón, we are commercial advisors in Almería, We are aware of the latest tax news and we are prepared to guide you in all the changes that are approaching. Our team of experts in fiscal and accounting advice is at your disposal to give you the help you need.
If you wonder how these modifications can influence your company or need advice to adjust to the changes, Do not hesitate to contact us!
