5.4 Simplified special regime
An activity can only be taxed in the simplified regime of VAT if it is taxed in objective estimate of Personal Income Tax . The coordination between both regimes is total. Resignation or exclusion in one produces the same effects in the other. An activity in objective estimation of IRPF can only be taxed in VAT in equivalence surcharge, special regime for agriculture, livestock and fishing or regime simplified. The resignation must be made by submitting the forms 036 or 037 of census registration or modification declaration, in the month of December prior to the beginning of the calendar year in which it must take effect.
The simplified regime is only compatible with the agriculture, livestock and fishing regime and with the equivalence surcharge . Whoever carries out an activity subject to the general regime of VAT or to a special regime other than those indicated, will not be able to pay taxes under the simplified regime of VAT for any activity (except activities in which exempt internal operations are carried out exclusively or leasing of real estate that does not involve business activity according to Personal Income Tax ). If an activity is carried out under the simplified VAT regime and another incompatible activity is started during the year, the exclusion for that activity will take effect in the following calendar year.