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Practical Handbook VAT 2021

Causes for loss of entitlement to the special system

The special scheme for the group of entities shall cease to apply for the following reasons:

  1. Any of the circumstances arise that determine the application of the indirect estimate method.

  2. Non-compliance with the obligation to elaborate and keep the specific information system for this regime.

The cessation of the application of the special regime for the group of entities due to the aforementioned causes will take effect in the settlement period in which one of these circumstances occurs and in the following periods, and all the entities making up the group must comply with all the general obligations established in the tax regulations from that period onwards.

In the event that an entity belonging to the group is at the end of any winding-up period in an arrangement with creditors or in liquidation, it shall be excluded from the special group scheme as from that period.