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Practical Handbook VAT 2021

Special system of the group of entities

With effect from 11 July 2021, Article 8.2 of Law 11/2021, of 9 July, clarifies the scope and nature of breaches of the specific obligations of this regime in which the parent entity must necessarily be the offending party, as it represents the group of entities.

Specifically, the parent entity will be the infringing party for non-compliance with the obligations deriving from the payment of the tax debt, the request for compensation or the refund resulting from the aggregated tax return, being responsible for the truthfulness and accuracy of the amounts and qualifications stated by the dependent entities included in said return.

The other entities applying the special regime of the group of entities shall be jointly and severally liable for the payment of these penalties.