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VAT practical manual 2021.

Commencement or cessation of application of the special system

Regularizations to be carried out in the event of the beginning and cessation of operations in the special regime:

  1. When an activity changes from the general regime to the special regime , the owner of the exploitation will be obliged to:

    • Enter the amount of the compensation corresponding to the future delivery of natural products already obtained and not delivered on the date of the regime change.

    • Rectify the deductions corresponding to goods, except investment goods, and services not consumed or used in whole or in part, effectively in the activity or operation.

  2. When an activity changes from the special regime to the general regime, the owner of the exploitation will have the right to:

    • Make the deduction of the fee resulting from applying to the value of the goods used for the activity, VAT excluded, on the date it stops applying the regime, the rates in force on said date, without taking into account investment goods or goods and services that have been used or consumed, totally or partially, in the activity.

    • Deduct flat-rate compensation for natural products obtained on farms that have not been delivered on the date of the regime change.

In both cases, you have the obligation to prepare and present an inventory in which the natural products obtained and not delivered (for compensation) and the goods and services acquired and not consumed or used totally or partially (for quotas).

The presentation of the inventory and the exercise of these rights will comply with the requirements and conditions established by regulation. Specifically, the presentation must be made within fifteen days from the day the application of the special regime begins or ends, and may be presented electronically through the procedure enabled in the Electronic Headquarters for the presentation of the inventory of stocks due to the start or cessation of activity subject to special Value Added Tax (VAT) regimes.

For the regularization of the deductions of the fees borne in the acquisition or import of investment goods , the deduction proportion applicable during the period or periods in which the activity is covered by this special regime will be zero.