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VAT practical manual 2021.

Simplified systems and agriculture, livestock farming and fisheries

Exclusive limits

Article 70 of Law 11/2020, of December 30, on the General State Budgets for the year 2021, with effect from January 1, 2021 and indefinite validity, modifies the thirteenth transitional provision of the Law of VAT in order to extend for the 2021 period the limits for the application of the simplified regime and the special regime for agriculture, livestock and fishing.

Thus, the limits applicable for the 2021 financial year are as follows:

In the case of the simplified regime, volume of income in the immediately preceding year:

  • Set of activities, except agricultural, forestry and livestock: 250,000 euros.

  • Agricultural, forestry and livestock activities: 250,000 euros.

In the case of REAGP , volume of income in the immediately preceding year:

  • Activities included in the REAGP: 250,000 euros.

  • Remaining activities: 250,000 euros.

In both regimes, the volume of purchases and imports of goods and services in the immediately preceding year, excluding those relating to fixed assets: 250,000 euros.

Reduction in the number of tax periods affected by the waiver of the special simplified regime and special VAT regime for agriculture, livestock and fishing corresponding to the years 2020 and 2021

Taxpayers who have waived the simplified special regimes and those for agriculture, livestock and fishing for the 2020 financial year will be able to apply these regimes again in the 2021 or 2022 financial year.

Taxpayers who renounce the simplified special regimes and those for agriculture, livestock and fishing in 2021 will be able to apply these regimes again in the 2022 financial year.

Deadlines for renunciations and revocations of the simplified and agriculture, livestock and fishing VAT regimes, for the year 2021

The period for resignation from the simplified regimes and those of agriculture, livestock and fishing and the revocation thereof, which must take effect for the year 2021, is from December 24 to January 31, 2021.

The waivers and revocations submitted for the year 2021 to the special simplified regimes and those of agriculture, livestock and fishing during the month of December 2020, prior to December 24, are understood to be submitted within the valid period, and the option made may be modified within the period mentioned in the previous paragraph.

Income on account corresponding to the first quarter of 2021

Entrepreneurs who carry out activities under the simplified regime other than agricultural, livestock and forestry activities may reduce by 20 the percentages for calculating the payment on account corresponding to the first quarterly installment of the 2021 financial year, established in number 3 of the Instructions for the application of the indices and modules in VAT of Annex II of Order HAC /1155/2020, of November 25.

This reduction will be 35 percent for retail trade, hospitality and transportation activities classified under the following headings of IAE : 653.2, 653.4 and 5, 654.2, 654.5, 654.6, 659.3, 663.1, 671.4, 671.5, 672.1, 2 and 3, 673.1, 673.2, 675, 676, 681, 682, 683 and 721.1 and 3.