Special VAT Schemes in Spain: A Comprehensive Guide

Posted on Sep 28, 2024 in Economy

Special VAT Schemes in Spain

Special Charge Scheme Equivalence

Special charge scheme equivalence is a mandatory and irrevocable scheme applied to buying and selling by retail traders who are natural persons or entities that pay under the IRPF tax regime. The retailer must also meet the following requirements:

  • When delivering goods without having undergone any transformative process.
  • When the sum of deliveries to those who do not have the status of professional employee exceeds 80% of total deliveries.

The special arrangements are made through the providers. Retailers have to notify them of their condition, and when they send the goods, they must pass the same bill in the special scheme for retailers separately. The special regime does not impact how retailers bill their customers but rather how they are billed.

VAT tax rates (charges):

  • 18% -> 4%
  • 8% -> 1%
  • 4% -> 0.05%

Excise goods recorded:

  • Snuff -> 1.75%

The BI in which the surcharge equivalence applies is the same as when implementing the special regime declared for VAT. It is cleared to the Treasury together with VAT by taxable persons for VAT (suppliers).

Obligations in surcharge method:

  • Retailers are not required to adopt accounting regimes in relation to VAT.
  • They are not required to make the settlement and payment of tax to the Treasury.
  • They are not obliged to issue invoices unless the purchase is from a business professional or if one is required.

Special Arrangements Agriculture, Livestock, and Fisheries (RE AGP)

Special arrangements agriculture, livestock, and fisheries (RE AGP) is a voluntary scheme for holders of agricultural, forestry, farming, or fishing businesses, provided that they are individuals who have not billed more than €300,000 in the previous year. Entrepreneurs who can apply for this scheme are not required to charge VAT or transfer duty; therefore, they cannot deduct input tax on their purchases. They are entitled to obtain “a lump sum compensation” each time they sell their products. This compensation is deductible to the employer that pays the wages (box 34, model 303).

The operations entitled to such compensation are deliveries/sales to other businesses of natural products obtained on their farms.

The basis of compensation:

The selling price of products excluding indirect taxes or accessory expenses (transportation, packaging, etc.) loaded separately to the buyer. The amount of compensation is the amount resulting from applying the share base:

  • 10% for natural products derived from agriculture or forestry
  • 8.5% for natural products from farming or fishing

Deduction Compensation:

Taxpayers who paid the compensation must have a receipt proving the payment of such compensation signed by the heads of farms. The receipt should contain the following information:

  • Series, number, and date
  • Name, BIF, and other data identifying the seller
  • Description of goods or services
  • Prices of these goods and services
  • The compensation rate and amount
  • Signature of seller or owner holding

The original is signed by the buyer, and the seller keeps a copy. Both retain it for 4 years.

Obligations in the AGP RE:

Taxable persons included in this scheme are exempt from most formal obligations of VAT, except:

  • Request the NIF
  • Submit the declaration of commencement, modification, or termination of activities (model 036)
  • Keep a log book to record the transactions of this special regime AGP RE
  • Keep a copy of receipts for 4 years from the tax accrual recorded
  • Buyers must record receipts in a special record book

Special Arrangements Used Goods, Works of Art, Antiques, and Collectibles

Special arrangements used goods, works of art, antiques, and collectibles is a voluntary scheme. Used goods, renewed or transformed by the taxpayer itself or by its account are not considered. Taxes charged on purchases of goods to be resold are not deductible, but the rest of the taxes charged on the exercise of their business (such as rent, telephone, etc.) are.

The BI is the profit margin if you include the VAT, and the margin is calculated by subtracting the sale price from the purchase price (both tax-inclusive of the operation). In any case, the profit margin cannot be less than 20% of the selling price or 10% in the case of automobiles. The taxpayer is required to issue VAT invoices for purchases in procurement to non-taxable persons for VAT. They must keep a specific record book in which the following appears:

  • The description of the property
  • The invoice number and purchase price
  • Number of the bill of sale, sale price, and VAT repercutido

Some goods that are marketed or working in this scheme are:

  • Paintings, sculptures, ceramics, photographs, artists, stamp collections, Modena

Simplified System

The simplified system is a system of a waivable nature. The waiver must be communicated at the beginning of the exercise of activity or in December of the previous year. Its requirements are:

  • Have an annual turnover not exceeding €300,000
  • Carry out a series of economic activities listed in art.37 VAT
  • That the income of the previous year does not exceed €450,000
  • Individuals (and others)
  • etc.

Obligations in the simplified scheme:

  • Bring book invoices scheme and keep them numbered in order of date
  • Retain proof of payment of bills and tax clearance
  • Keep justifications or modules rates applicable to its business
  • To issue invoices for fixed asset transfers and keep copies

Employers covered by the simplified scheme make three former settlements (based on 01/01 data commencement of operations data) in the model 303 and the 4th quarter (the adjustment will be based on actual data 31/12) in model 311. The law considers a person employed as one that performs 1800h/annual, and salaried staff under 19 is computed at 60%.

Calculation of the amount of revenue:

  1. Amount due for current operations (estimated total amount of the modules)
  2. Share the first 3 quarters (applied in percentages established on the tax due). Supported by current operations
  3. Cuota deductible: the amount of input tax + 1% of the amount due
  4. Cuota the simplified scheme. The greater of:
    • a) Fee income – share supported
    • b) resulting from applying the fee percentage set for the activity to the amount due on the outcome of Step 1
  5. Share of the 4th quarter. The greater of:
    • a) b) minus the amounts of the first 3 quarters – VAT on the purchase of fixed assets

Special Arrangements Travel Agency

Special arrangements travel agency is a mandatory regime. The taxpayers who are required to use it are travel agencies and tour operators that act on their behalf as intermediaries using goods delivered and services provided by other businesses or issuing invoices from professionals. Travel agencies are not obliged to apportion VAT; this does not mean that the buyer cannot deduct it. The BI is the gross margin of the travel agency operations that can implement this scheme.

Gross margin = amount charged to the customer (excluding VAT) – procurement for the traveler (VAT)

BI = total gross margin / 1.18

According to art.142 of VAT -> 6% of the final price.