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VAT practical manual 2021.

Causes for loss of entitlement to the special system

The special regime for the group of entities will 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 of the group of entities motivated by the causes mentioned above will produce effects in the liquidation period in which any of these circumstances occur and in the following periods, with all the entities comprising the group having to comply with the set of general obligations established in the tax regulations from said period onwards.

In the event that an entity belonging to the group is in bankruptcy or in the process of liquidation at the end of any liquidation period, it will be excluded from the group's special regime from that period.