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VAT practical manual 2021.

Frequently asked questions raised in this chapter

1. Is a farmer who is in the special regime for agriculture, livestock and fishing required to invoice?

Generally speaking, no. Farmers do not have to issue billing documents, they only have to sign the receipts issued by the recipient of their operations. However, an invoice must be issued in all cases for deliveries of property.

2. A company manufactures two different products. Can it use consecutive numbering and a series for each product?

Yes, the company can establish different series of invoices, especially but not exclusively, when there are several billing centers.

3. Are restaurants generally allowed to issue simplified invoices?

There may be two situations:

  • If they are taxed under the simplified regime in VAT they are exempt from the obligation to invoice, except for the transfers of fixed assets.

  • In other cases, restaurants can issue simplified invoices (with the content of article 7.1 of the Billing Regulations), without the need to request prior authorization, when their amount does not exceed 3,000 euros, VAT included.

However, when the recipient is a business or professional or when it is required for the exercise of a right of a tax nature, the simplified invoice must additionally include the data referred to in article 7.2 of the Invoicing Regulations.

4. How long should the purchase invoice for a building be kept?

  1. If used in the same year of acquisition, must be kept for 14 years: the year of purchase, the following 9 years as it is the regularization period and the following 4.

  2. If it is started to be used in years after acquisition, it must be taken into account that the adjustment period begins in the year of use and that the years in which the invoices must be kept must be increased.

5. In the Record Book of Incoming Invoices, should each invoice be recorded separately?

No, a summary entry can be made of the invoices received on the same date, provided that they come from a single supplier, the amount of each invoice does not exceed 500 euros, VAT excluded, and that the combined amount does not exceed 6,000 euros, VAT excluded. including.

6. A taxpayer who is obliged to SII during the 2020 fiscal year, what billing records must be sent through the Electronic Office of the Tax Agency?

You must submit all billing records for transactions carried out since the beginning of the 2020 financial year, taking into account that the deadline for submitting information prior to inclusion in the SII will be from the date of inclusion until the end of the financial year.

7. Which taxpayers must keep the VAT Record Books through the Tax Agency's electronic headquarters?

This system of keeping the Record Books, known as Immediate Supply of Information, is mandatory for taxpayers who have a monthly VAT settlement period:

  • Registered with REDEME (Monthly VAT Return Registry)

  • Large Companies for VAT purposes (taxable persons with a volume of operations for VAT purposes in the immediately preceding calendar year exceeding €6,010,121.04)

  • VAT Groups

On a voluntary basis, taxpayers who are not required to do so may also keep registration books through the electronic office. To do so, they may exercise this option in the month of November prior to the start of the calendar year in which it must take effect or at the time of submitting the declaration of commencement of the activity, taking effect in the current calendar year.

The exercise of this voluntary option for the 2017 financial year implied the obligation to self-assess VAT monthly.

For settlement periods starting in 2018, taxpayers who have voluntarily opted for the SII will maintain their quarterly settlement period.

8. A taxable person of VAT whose operations are exclusively exempt in accordance with the provisions of article 20 of the Tax Law and has a volume of operations for VAT purposes in the immediately preceding calendar year greater than €6,010,121.04, should you keep your record books through the Electronic Headquarters of the Tax Agency?

Yes, you are required to keep your records through the Tax Agency's Electronic Office. (Consultation of the General Directorate of Taxes V1588-17).

Although it will not be necessary to keep a register of invoices issued when there is no obligation to issue invoices for all of its operations, in accordance with the provisions of the Regulation governing invoicing obligations, it is required to keep a register of invoices received, in general, regardless of whether the activity carried out is totally exempt from the Tax and without the right to deduct the fees incurred in the acquisition of goods and services for said activity.