In recent months, there have been a few reforms that affect different aspects of VAT. In this article you will find the main news related to this tax.
- A company aware of its fiscal framework is better able to face future challenges
Value Added Tax (VAT) is a indirect tax that taxes consumption, in which companies and self-employed persons act as intermediaries between the Treasury and the final consumer of their products or services, by collecting VAT on their sales and entering the amounts that must be settled once the fees incurred in their purchases of goods and services have been deducted. .
For input VAT payments to be deductible, they must be related to the activity, justified by an invoice and recorded in the accounting, appearing duly reflected in the accounting books of invoices received or of investment goods.
Simplified regimen
The main developments come via royal decree, fundamentally in two titles, RD Law 27/2018, of December 28, 2018, by which extend the limits of the exclusion of the simplified and special regimes for agriculture, livestock and fishing in VAT.
The limits of 2018 are maintained. The volume of income from the previous year that cannot be exceeded for all business or professional activities, excluding agricultural, forestry and fishing, will continue to be 250,000.
IBS
With respect to Immediate Supply of Information (SII), you can choose to apply it throughout the year, not like until now, which had to be done during the month of November of the previous year.
In this case, taxable persons who have begun to keep VAT record books through the SII from a date other than the first day of the calendar year will be obliged to send the billing records for the period prior to said date corresponding to the same year. natural. They must reflect the information in the corresponding record books.
VAT on cinemas and theaters
As of January 1, 2019, the VAT on cinemas and theaters. The reduced rate of 10% applies to services provided by performers, artists, directors and technicians who are natural persons, to producers of films that may be exhibited in theaters and to organizers of theatrical and musical works. As it is written, it would remain up in the air what would happen with a film that is created to be distributed, for example, on Netflix and that is not released in theaters.
Social services
The application of the 4% type is extended to telecare services, home help, day and night center and residential care to people in a situation of dependency when an economic benefit is granted that covers more than 10% of the price, instead of requiring 75% as until now.
Digital services
There is a regulatory change in the rLocation rules for services provided electronically (art. 70.One.4th and 8th LIVA). In order to reduce the administrative and tax burdens of paying taxes in the Member State of consumption for micro-enterprises that occasionally provide these services to final consumers in other Member States, a common threshold is established at Community level of 10,000 euros (VAT excluded). ).
If this amount is not exceeded, these services are subject to VAT in their Member State of establishment, although they may opt for taxation in the Member State where the recipient of the service is established, depending on whether or not it is more beneficial for the company.
Reversal of the taxable person for the acquisition of real estate
In these cases, it reverses the passive subject if the recipient meets the requirements to apply the reverse charge and declares that he or she has the right to a total or partial deduction of VAT. The legal assumption is adapted to the regulation that the reversal of the taxable person also occurs when the recipient can benefit from the partial deduction and not just the total VAT deduction.
Convertible bonds
The General Directorate of Taxes published a resolution dated December 28, 2018 that affects the treatment of convertible bonds in VAT establishing definitions and taxation rules for the so-called univalent and multipurpose bonds.
Export exemptions
In this case, VAT refund to travelers with residence outside the Community, it is made regardless of the amount of the invoice, eliminating the requirement that said amount must exceed 90.15 euros.
Exemptions in operations assimilated to exports.
In this case, the exemption provided for transportation of travelers and their luggage by air from or to an airport located outside the spatial scope of the tax, will now also apply to connecting flights when they are covered by a single transport ticket.
The use of a software cloud billing can help us not make mistakes on invoices, control accounting from anywhere and at any time and will facilitate the submission of VAT returns on time.
If we want the VAT to have no secrets for us, we can download for free “The best guide to calculate and file the VAT return in 2019”
Fountain: SAGE
