Special VAT Schemes in Spain for Businesses
Special Charge Scheme Equivalence
This mandatory scheme applies to retail traders who are individuals or entities paying IRPF tax and meet the following criteria:
- Deliver goods without transformation.
- Over 80% of deliveries are to non-professional customers.
Retailers notify suppliers of their status. Suppliers then issue invoices under the special scheme. VAT rates are adjusted (e.g., 18% becomes 4%, 8% becomes 1%, 4% becomes 0.05%). Excise goods like snuff have a 1.75% rate. The tax base for the equivalence surcharge is the same as the standard VAT regime. Retailers declare and pay the surcharge to the Treasury.
Obligations:
- No specific VAT accounting required.
- No VAT settlement or payment to the Treasury.
- Invoicing only required for sales to professional businesses or upon customer request.
Special Regime for Agriculture, Livestock, and Fisheries (RE AGP)
This voluntary scheme applies to individuals in agriculture, forestry, farming, or fishing with annual turnover under €300,000. Participants don’t charge VAT but receive a lump-sum compensation deductible by the buyer (box 34, model 303). Compensation applies to sales of natural products to other businesses.
Compensation Basis:
Selling price excluding indirect taxes and separate transport/packaging costs. Rates: 10% for agriculture/forestry, 8.5% for farming/fishing.
Compensation Deduction:
Requires a receipt with details like series, number, date, seller information, product description, prices, compensation rate and amount, and signatures. Both buyer and seller retain copies for 4 years.
Obligations:
- Request NIF.
- Submit activity start/change/end declarations (model 036).
- Maintain transaction logbook.
- Keep receipt copies for 4 years.
- Buyers record receipts in a special book.
Special Regime for Used Goods, Art, Antiques, and Collectibles
This voluntary scheme applies to used, renovated, or transformed goods. Input VAT on purchases is non-deductible, except for general business expenses (rent, telephone, etc.). The tax base is the profit margin (including VAT), calculated as the difference between selling and purchase prices. The margin cannot be less than 20% of the selling price (10% for cars). VAT invoices are required for purchases from non-VAT payers. A specific record book must be maintained, detailing item descriptions, invoice numbers, purchase and sale prices, and VAT.
Examples: Paintings, sculptures, ceramics, photographs, stamps, model collections.
Simplified System
This waivable system (waiver communicated at the start or in December of the previous year) has the following requirements:
- Annual turnover under €300,000.
- Specific economic activities (Art. 37 VAT).
- Previous year’s income under €450,000.
- Individuals (and others).
Obligations:
- Maintain numbered invoice book.
- Retain payment and tax clearance proofs.
- Keep records of applicable module rates.
- Issue invoices for fixed asset transfers.
Three quarterly settlements (model 303) based on January 1st data and a fourth-quarter adjustment (model 311) based on December 31st data. A person is considered employed if they work 1800 hours/year. Salaried staff under 19 are counted at 60%.
Revenue Calculation:
- Total due for current operations (estimated from modules).
- Proportion for the first three quarters (percentages applied to total due).
- Deductible amount: Input VAT + 1% of the amount due.
- Simplified scheme fee: The greater of (a) Income fee – supported share or (b) Percentage set for the activity applied to step 1.
- Fourth-quarter share: The greater of (a) or (b) minus the first three quarters’ amounts and VAT on fixed asset purchases.
Special Regime for Travel Agencies
This mandatory regime applies to travel agencies and tour operators acting as intermediaries. They are not obliged to apportion VAT, but buyers can deduct it. The tax base is the gross margin.
Gross Margin = Amount charged to customer (excluding VAT) – Procurement costs for the traveler (including VAT).
Tax Base = Total Gross Margin / 1.18
According to Art. 142 of VAT, the rate is 6% of the final price.