The 30th of November is the deadline set by Spanish Tax Authorities to decide if the companies want to join, continue or exit to some systems, with effects to 2021 year:
• Monthly refund registry (REDEME)
• The special system of Import VAT
• Voluntary refusion to Immediate Supply of Information on VAT (SII)
It is a voluntary system where the main advantage is a monthly VAT refund. The taxpayer doesn’t have to wait until the end of the year, IN January of every year, to request the annual VAT refund.
Companies must qualify with some requirements to choose this system:
• Staying up to date with your tax obligations.
• Not being in the case which could give rise to revocation of the Tax Code (NIF) explained in RGGI art. 146.1.b), c) and d).
• Not being in the case which could give rise to the precautionary withdrawal in the monthly refund register of RGGI.
• Not carrying out activities which are taxed in the simplified system.
Companies which choose this system must submit monthly VAT returns. Automatically, they will have to report to Tax Authorities their invoice registers, according to immediate supply of information (SII) specifications.
Taxpayers included in the monthly refund regime will be obliged to remain in it at least during the year for which inclusion was requested.
The main objective of this regime is to pay to Tax Authorities the import VAT in the same VAT return, avoiding shortness of cash.
Companies that could apply this regime should meet some of the following requirements:
• Companies with the volume of operations exceeding during the immediately preceding calendar year 6,010,121.04 euros.
• Companies who have opted for the monthly refund registry (REDEME).
• Companies who apply the special VAT regime of the group of entities.
In short, entities that can opt for this regime are those required to submit VAT returns on a monthly basis.
The SII basically consists of the electronically sending of invoices registries from the VAT books. To do this, the taxpayer must send to Tax Authorities invoice details electronically and using this information the different VAT books will be configured, practically in real time.
The collective that will be subject to the compulsory use of the SII is made of taxpayers who are subject to submit VAT return on a monthly basis:
• Registered with REDEME (Monthly VAT Return Registry)
• Big Companies (turnover of over 6.010.121,04 euros)
• VAT Groups (REGE)
In addition, any other taxpayer wishing to voluntarily apply SII may do so.
Parties opting into SII must comply with the supply of invoicing records during the months of the calendar year they have opted in to.
Once this is fulfilled, parties may opt-out of the system in the tax register declaration (form 036).
Elena Ramírez
Tax Partner &
Director at the International office
