Requirements to be eligible for the Simplified VAT Regime
Posted: Sun Dec 22, 2024 5:07 am
At the beginning of the year, the annual amount to be paid is calculated and a percentage of the amount is advanced each quarter .
At the end of the financial year, the total amount of annual VAT accrued by modules is reduced by the VAT incurred on expenses throughout the year. In turn, the advance payments made in the quarters are reduced from the resulting figure. This gives the final amount.
However, the thailand business email list mechanics of the tax provide that the amount to be paid will be the greater of two :
Calculated as we have just mentioned, by the difference between the VAT accrued according to the modules and the VAT on expenses for the year.
Or the one that results from applying a minimum percentage to the VAT rate accrued by modules , which varies depending on the activity.
What law regulates the simplified VAT regime?
In Spain, the simplified regime of Value Added Tax (VAT) is regulated by Law 37/1992 , of December 28, on Value Added Tax.
This legal framework establishes the general provisions and the different tax regimes applicable to VAT, including the Simplified Regime, which is designed to facilitate the taxation of small businesses and professionals whose annual turnover is within certain limits established by current regulations.
At the end of the financial year, the total amount of annual VAT accrued by modules is reduced by the VAT incurred on expenses throughout the year. In turn, the advance payments made in the quarters are reduced from the resulting figure. This gives the final amount.
However, the thailand business email list mechanics of the tax provide that the amount to be paid will be the greater of two :
Calculated as we have just mentioned, by the difference between the VAT accrued according to the modules and the VAT on expenses for the year.
Or the one that results from applying a minimum percentage to the VAT rate accrued by modules , which varies depending on the activity.
What law regulates the simplified VAT regime?
In Spain, the simplified regime of Value Added Tax (VAT) is regulated by Law 37/1992 , of December 28, on Value Added Tax.
This legal framework establishes the general provisions and the different tax regimes applicable to VAT, including the Simplified Regime, which is designed to facilitate the taxation of small businesses and professionals whose annual turnover is within certain limits established by current regulations.