Following Our formative itinerary we started a couple of weeks ago about the taxation to be faced by the self-employed, this week we will talk about VAT (Value Added Tax). What We present today is a simple compilation of what you must know in a way as simple and clear as possible. Colloquially speaking, we could say that VAT is a tax burden on consumption. Each self-employed or company in the production chain will transfer its VAT to the next link until it reaches the final consumer to crediting it to the Treasury. That Is why we consider it an indirect tax: it is the amount of money or kind of tax collected by a company that pays the tax to the collecting agent, Treasury, and it affects all or much of the amount of that tax in who is the final consumer. The Employer must pay the difference between the VAT that has been levied and charged to his clients, and the one he has supported for his purchases to suppliers. The delivery of goods, services, imports of goods and intra-Community procurement Are subject to VAT. Taxable Persons (to whom VAT is affected):

1. The entrepreneur or professional who delivers the good or provides the service. The Seller is obliged to pass the VAT to the customer.
2. The Taxable person in intra-Community procurement of goods. In this case the taxable person is the businessman located in Spain who buys the good.
3. In Imports of Goods: the taxpayer is the importer of the good. The importer will pay the VAT at customs.
4. Services that are understood in Spain, but in which the service provider is located outside Spain. In this case, the taxpayer will be the one who receives the service

VAT Calculation: In General, in each liquidation the VAT charged to the clients is declared, to which we subtract the VAT supported in our purchases to the suppliers: VAT To DECLARE HACIENDA = VAT ACCRUed-VAT SUPPORTED VAT accrued/charged to clients = Sale Price × VAT Rate Accrued (%) of each invoice issued. VAT supported in purchases to our suppliers = Purchase Price × Type of VAT supported (%) of each invoice received for purchases and expenses. Declarations to be presented (VAT): In Order to contribute the collection to the Treasury the autonomous workers must present the quarterly and annual VAT declarations through the Model 303 (quarterly) and also, obligatorily, the Model 390 (annual). Model 303: It Is The main model, which must present the vast majority of freelancers and companies, to liquidate VAT Quarterly. It’S the most common model. Through this model the businessmen and professionals communicate to the Tax Agency the VAT that they have invoiced for their sales and the one that they have supported in their purchases. When should Model 303 be presented?

• First Quarter (January to March) is presented from April 1 to 20.
• Second Quarter (April to June): from 1 to 20 July.
• Third Quarter (July to September): from 1 to 20 October.
• Fourth Quarter (October to December): from 1 to 30 January, in this period, in addition, the model annual summary 390 should be presented.

Model 390: This Is the annual summary (annual VAT) to be presented by all those presenting the Model 303. It’S informative. Declares to the Tax Agency a summary of the VAT invoiced and supported during the financial year. Users of the Canary Islands, Ceuta or Melilla, by not working with VAT should not present it. When should Model 390 be presented?

• The deadline for submission is from 1 to 30 January of the following year.

VAT Regimes and to whom they apply:

-Simplified VAT Regime:

This regime, you can accomodate him or not, only in the case of self-employed who listed in objective estimation (modules, of which we already discussed in the previous article). It can be waived if considered convenient. Although This is also to waive the system of INCOME TAX modules and the special regime for agriculture, livestock and fishing VAT. It should Also be borne in mind that it is only compatible with the agriculture, livestock and fishing regime, and with the equivalence surcharge, never with the general VAT regime. It Is calculated by applying the modules that tell us what is the VAT earned by sales, which can subtract all the VAT supported by current operations, without investments, plus 1% of the VAT accrued as costs of difficult justification. However, the standard sets a minimum VAT quota for current operations for activity, of which the VAT supported by investments may be deducted. It Is presented, within the Model 303.

-Special Rate of Equivalence surcharge:

It Is A special VAT regime for retailers who are individuals, i.e. self-employed traders who sell the final customer. Property Communities Are included. It Does Not apply to industrial, service or wholesale trade activities. There Are Some exempt activities: jewellery, Furrier’s, car dealers, sale of boats and airplanes, art objects, petrol stations, industrial machinery or minerals. For The retailer it means paying a higher VAT than normal, in exchange for not having to submit VAT returns to the Treasury. In this case, it pays the VAT directly to its supplier and it is much simplified its VAT management since it must not carry VAT books and, therefore, it is not necessary to save the invoices specifically for this type of scheme. Current VAT Rates (2018):

• Super-Reduced VAT (4%): Necessities
• Reduced VAT (10%): It applies to other products such as: live shows, transport, sports shows, libraries, museums, galleries, bars, restaurants, hotels, exhibitions, fairs, waste, cinema, cultural products, etc.
• General VAT (21%): This type of VAT applies to all other items that we may purchase, without exception.
• VAT-exempt Operations: Nizagara Medical and Health Services, education and training, cultural and sports societies, financial and insurance operations and rental of houses.

Compulsory Books to be submitted with the VAT declaration:

-Book registration of bills issued. -Book Register of receipts. -Book Registry of investment goods. -Book Registry of certain intra-Community operations. + INFORMATION: Tax agency Web www.agenciatributaria.es extended Information on VAT, models and other https://www.agenciatributaria.gob.es/AEAT.sede/Inicio/Procedimientos_y_Servicios/Impuestos_y_Tasas/IVA/IVA.shtml Assistant Virtual VAT expanded Tax Agency https://www.agenciatributaria.es/AEAT.internet/Inicio/RSS/Todas_las_Novedades/Le_interesa_conocer/Ampliacion_de_contenido_en_el_Asistente_Virtual_IVA.shtml Manual Practical VAT updated September 2018 https://www.agenciatributaria.es/static_files/AEAT/Contenidos_Comunes/La_Agencia_Tributaria/Segmentos_Usuarios/Empresas_y_profesionales/Empresario_individuales_y_profesionales/I.V.A./Manual_IVA_2018.pdf Other Reference pages: There Are webs that will help us to fill the models or calculate the VAT as they can be: http://www.ticbeat.com/empresa-b2b/como-rellenar-el-modelo-303-iva-para-autonomos-y-freelance-en-2018/https://www.contasimple.com/?promocode=FF3012&utm_source=contasimple&utm_medium=web&utm_campaign=CF-iva https://calculariva.es/https://www.serautonomo.net https://infoautonomos.eleconomista.es RELATED NEWS: All kinds of news are Continually appearing and with respect to the topic in which we find ourselves We include news that have emerged these last days: https://okdiario.com/economia/2018/11/22/ocde-pide-espana-quitar-iva-superreducido-turismo-porque-ya-no-necesario-3380979 https://www.vozpopuli.com/economia-y-finanzas/PIB-Economia-Espana-OCDE-IVA_0_1193281155.html https://www.20minutos.es/noticia/3498792/0/ocde-recomendaciones–espana-pensiones-iva/We Hope to clarify your doubts and see you next week with the Corporate Tax.