New 2014 Spanish VAT Formalities – PBS Welcome Solutions

2013 has introduced many changes in the VAT regulations that will come into effect as of Jan. 01, 2014.

Given the formalistic approach of this tax, in PBS we deem it highly recommendable to review some of the measures that can have a major impact in the day-to-day activities of Spanish VAT taxpayers and whose practical application must be prepared on time.

✔ If you are a taxpayer that shall apply the VAT cash system (so-called, RECC) do not forget that your invoices must include the reference “special VAT cash system”. Also, your VAT registry books of issued and received invoices will include:

•  A reference that a concrete transaction is subject to the VAT cash system;
• The date of collection / payment and the amounts;
• The mean of collection / payment.

✔ If you are a client not subject to the VAT cash system but your supplier is subject to it, remember that you will be entitled to deduct input VAT from this supplier’s invoices in the same conditions as those applying to taxpayers subject to this special system. You will deduct input VAT at the time of payment or on Dec. 31 of the fiscal year subsequent to that in which the transaction took place, if payment was not made.

Besides, your VAT registry books will contain the same references as those applying to taxpayers subject to the VAT cash system.

✔ In those cases in which the taxable base is modified (bad debts or debts in bankruptcy) you have to prove that the invoice has been effectively sent to the debtor and the bankruptcy administrator. Do not forget that the communications to the AEAT shall be made electronically.

✔ And, last but not least, the special term for filing the VAT return of the month of July is eliminated. Such return will be filed on August 20, at the latest.