Self-employed people who invoice up to 85,000 Euros per year can choose to take advantage of the next VAT concession regime, which will exempt them from tax liability. VAT included in invoices to present published and corresponding quarterly statements your tax. This is one of the measures that has already been fully agreed among the representatives of the Ministry of Finance. Tax Administration Together with CEOE, Cepyme, CCOO, ATA, UATAE and UPTA organizations that joined the working group formed at the end of August Institute of Financial Studies (IAE), according to what negotiation sources conveyed to El Periódico de Catalunya of the Prensa Ibérica group.
It is assumed that over one million self-employed They bill below the 85,000 euro threshold, but the new optional preferential VAT regime may not be of interest to all; Depending on the type of business, it may be more advantageous to invoice with VAT and declare the tax. The reform stems from a community directive that should come into effect in 2025, but the working group in question discusses how and to whom the new regime will be implemented in Spain.
Module mode
The said working group has been established to carry out the proposal for legislative amendment with the relevant calendar. tax regime for self-employed and SMEs. The main conclusions of this recommendation report, as it was drafted, General Directorate of Taxes It also includes the definitive elimination of the existing regime of the Ministry of Finance for the objective estimation of personal income tax (module diagram), temporarily and gradually throughout ua period of three years. approximately 355,000 taxpayers operating in sectors such as hotels, shops, hotels, taxis, schools, dry cleaners, hairdressers and other businesses whose full income does not exceed 250,000 euros per year. In principle, the module regime option will not be pressured for agriculture and livestock activities.
To carry out this reform, Navarra provincial treasuryFrom 2021, the objective estimation regime of personal income tax has been abolished and a special direct estimation system has been introduced for self-employed persons whose turnover is less than 150,000 Euros (300,000 in the case of agriculture, livestock, forestry or fisheries).
in 2024 or 2025
Treasury’s self-employed mixed working group plans to publish its report on recommendations in april (A period of six months was given at the time of its establishment). Some representatives of the group feel that the work will allow to encourage legislative change. starting in April To submit an early application until January 2024 new VAT franchise regime – Natural persons with a turnover of up to 85,000 Euros, or 100,000 Euros if intra-community operations are included, will be exempt from tax). However, the Ministry of Finance prefers not to talk about recent dates and reminds that: community directive The VAT regime, which includes this VAT regime that already exists in all EU countries except Spain, will not enter into force until 2025. In addition, the Ministry of Finance reminds that the results in the report are only advisory and do not bind the Government. .
The truth is that, General Manager of AEAT Tax ManagementThis Tuesday, Rosa Prieto referred to the fact that there was “unanimity” within the aforementioned group of the Institute for Economic Research in favor of implementing the VAT concession regime. Organized by ATA IV. Speaking at a table on taxation at the Entrepreneurs and Self-Employed Forum, Prieto explained that the Treasury is working with self-employed organizations to implement this regime where small businesses can be exempted from VAT filing. From his perspective, this system and AEAT’s assistance will “make it easier for the self-employed to meet their tax obligations and not be afraid to give it up. jump straight to prediction“This means the elimination of the modular regime in personal income tax.
Who benefits?
Prieto did not mention that the program is applicable to self-employed people with an income of up to 85,000 euros: “features can be decided”, he confined himself to affirming. was vice president Self Employed Workers Association Celia Ferrero (ATA), referring to the billing threshold of 85,000 euros (100,000 euros if intra-community operations), which appears in a summary document that El Periódico de Catalunya later had access to.
“Most important reduction of official obligations agree to refer to both”, which might occur in a regime such as concessionary VAT Celia Ferrerolike Rosa Prieto and others attending this discussion table: Minister of Finance of Navarra, Apple Saiz; PP Deputy Undersecretary of Economy, john bravoand professor and lawyer javier martinFrom F&J Martín Abogados.
In a concessionary VAT regime, the self-employed will no longer have to file quarterly tax returns, although they will be subject to a comprehensive annual informative declaration of all their activities.
Professor Javier Martín, “Are there any advantages? Does it all depend on the type of activity?” he explained. “If I have an activity with very little supported VAT, then I will be very interested in the franchise regime, because I will not have an impact and will make very little deductions. If I have too much supported VAT in my activity, the Franchise regime does not interest me. A regimen that will undoubtedly be beneficial for many.”