Jesús Gascón, Minister of State for Finance, said this Wednesday at the Ministry of Finance. disappearance of the objective estimation regime (modules) in which they are still taxed personal income tax about 355,000 self-employment with activities in accommodation, trade, taxis, academies, dry cleaners, hairdressers and other sectors small business. Gascón also admitted that there is a discussion supposed to be implemented in Spain. ‘franchise regime’ VATavailable in all other EU countries. This regime can exempt hundreds of thousands of self-employed and SMEs with annual turnover below 85,000 Euros from VAT obligations, if the maximum allowed by the European directive that regulates it is accepted. “But, we still don’t know what to do“Gascón told reporters after attending the 2023 Financial Congress organized by the Lefebvre firm.
“is-is A discussion we should have in 2023To accept the legal changes that may be necessary in 2024 in order to It will come into effect in 2025“, Gascón, in any case, inadvertently delimited what would be the final decision of the Government on the final abolition of the Module regime and the adoption of the VAT concession regime.
In a franchised regime, the self-employed person or professional is free to issue a VAT invoice. VAT is not required on your invoices, but input tax is not deductible either. You should not file a quarterly tax return, but a full annual statement about your operations. “is not an exemption taxis the state of not being subject to‘ said the Finance Minister.
working group at the Institute for Financial Studies
Gascón referred to the working group formed at the Institute for Financial Studies (IEF) to discuss, among other things, the abolition of the module regime and the implementation of the VAT concession regime with self-employed organizations and SMEs. “It’s not an easy discussion. That’s why we created a working group to discuss this with the self-employed organizations and SMEs themselves,” he said.
The IEF working group, consisting of the General Directorate of Taxes, the Tax Office and representatives of the CEOE, Cepyme, CCOO, ATA, UATAE and UPTA, is “unanimous” on the imminent adoption of a regime VAT concession and A broad consensus According to El Periódico from the Prensa Ibérica group, to do this for self-employed people with a turnover of less than 85,000 euros per year. This is the maximum limit allowed for small businesses by the European VAT directive, which will come into effect in 2025 (€85,000 overall and €100,000 if intra-community transactions).
However, Gascón acknowledged this Wednesday that one of the most sensitive issues, if necessary, will be determining the possible limit under which a self-employed person or SME can benefit from the franchise regime.
“It is being discussed whether a concession regime is possible within the possible concession process in Spain. Simplified regime and abolition of VAT equivalenceRicardo Álvarez, Deputy Director General of VAT at the Ministry of Finance, later pointed out at the same tax forum. period,” he added.
According to Javier Martín, professor and lawyer from F&J Martín Abogados, the possible advantages or disadvantages of a franchised VAT regime depend on the type of activity carried out: “Of course it is interesting if, in the same application, supported VAT quotas are not relevant. Otherwise it is appropriate to apply the general regime. Case basis, but for the vast majority of self-employed people, It will be a useful regimen.“, he continues.