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Practical Handbook VAT 2021

Subjective requirements

Taxpayers whose turnover during the previous calendar year has not exceeded 2,000,000 euros may apply the special cash basis regime (hereinafter the "RECC").

For the calculation of the volume of transactions, the total amount of transactions, excluding VAT and, where applicable, the equivalence surcharge and flat-rate compensation, of the supplies of goods and services carried out by the taxable person during the previous calendar year, excluding exempt transactions, as well as occasional supplies of immovable property, supplies of investment goods and financial transactions and exempt transactions relating to non-habitual investment gold, shall be taken into account.The transactions shall be deemed to have been carried out when the chargeable event for VAT has occurred or would have occurred if the transactions were not covered by RECC.

Taxable persons whose cash receipts from the same recipient during the previous calendar year exceed 100,000 euros shall be excluded.