7,4,3,1. Scope

The objective estimation regime will be applied to the economic activities carried out by the taxpayer provided that the following conditions are met:

1. That the activity is specifically included in the Ministerial Order that regulates this regime Order HAC/1164/2019 of November 22.

2. That the volume of gross income from all economic activities carried out by the taxpayer in the immediately preceding year, except for agricultural, livestock and forestry activities, does not exceed 250,000 euros per year or 125,000 euros per year when it corresponds to operations for which they are required to issue an invoice as the recipient is a businessman or professional acting as such.

   However, not only the operations corresponding to the economic activities carried out by the taxpayer must be computed, but also those corresponding to those carried out by the spouse, descendants and ascendants, as well as by entities under an income attribution regime in which any of the above participate, in which the following circumstances occur:

   • That economic activities are identical or similar. For these purposes, economic activities classified in the same group in the Tax on Economic Activities will be deemed to be identical or similar.

   • That there exists a common direction for such activities, sharing personal or material resources.

3. That the volume of purchases of goods and services, excluding the acquisition of fixed assets in the previous year, does not exceed the amount of 250,000 euros per year. In the case of subcontracted works or services, the amount thereof will be taken into account for the calculation of this limit.

   For these purposes, not only the volume of purchases corresponding to the economic activities carried out by the taxpayer must be computed, but also those corresponding to those carried out by the spouse, descendants and ascendants, as well as by entities under an income attribution regime in which any of the above participate, in which the circumstances indicated in section 2 above occur.

   When an activity had been started in the immediately preceding year, the volume of purchases will increase yearly.

4. That the maximum specific magnitude established for each activity in letter d) of the third article of the aforementioned Order (in general, number of people employed) has not been exceeded during the previous year; except for transport activities, where the vehicles used are taken into account).

   For these purposes, not only the specific magnitude corresponding to the economic activities carried out by the taxpayer must be computed, but also those corresponding to those carried out by the spouse, descendants and ascendants, as well as by entities under an income attribution regime in which any of the above participate, in which the circumstances indicated in section 2 above occur.

5. That the taxpayer does not determine the net income of any economic activity by the direct estimation regime, in any of its modalities.

   When an economic activity not included in or for which the objective assessment regime is waived is started during the year, exclusion from the regime, with respect to the activities that were being carried out, will occur the following year.

6. That its application has not been waived in a timely manner.

7. That it has not been waived or excluded from the simplified VAT regime.

8. That the economic activities are carried out, totally or partially, within the scope of application of the tax. For these purposes, it shall be understood that the activities of urban collective and passenger road transport, taxi transport, road freight transport and removal services are carried out, in any case, within the scope of application of the tax.

Volume of gross returns

For the purposes of determining the volume of gross income that is excluded from the application of the objective assessment regime, only the following will be computed:

• The operations that must be recorded in the sales or income register book provided for in article 68.7 of the Personal Income Tax Regulations or in the income register book provided for in article 40.1 of the Value Added Tax Regulations, approved by Royal Decree 1624/1992, of December 29.

• Operations for which they are required to issue an invoice, in accordance with the provisions of the Regulation governing invoicing obligations, approved by Royal Decree 1496/2003, of November 28.

When an activity was started in the immediately preceding year, the volume of income will be increased to the year.

The volume of income will include that obtained from all activities, not including current or capital subsidies or compensation, nor the Value Added Tax and, where applicable, the equivalence surcharge that is levied on the operation, for those activities that are taxed by the simplified VAT regime.