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Practical Handbook VAT 2021

Special regime for additional VAT

This scheme applies only to retail traders.

A retail trader is a retailer if the following requirements are met:

  1. Movable and non-movable goods are delivered without having undergone any manufacturing, processing or manufacturing process by themselves or through third parties.

  2. When the sales made in the previous year to the Social Security and its managing or collaborating entities or to those who do not have the status of entrepreneurs or professionals are greater than 80% of the sales made.

    This requirement does not apply if in the preceding year the taxable person did not carry out commercial activities or if they are taxed under the objective assessment method of IRPF, provided that they are taxable persons who have the status of retail traders at IAE.

The application of this regime involves:

  1. On purchases, retailers' suppliers charge them and are obliged to pay the equivalence surcharge, in addition to the VAT.

  2. In their commercial transactions, as well as in the transfer of goods or rights used exclusively in this activity, they must pass on VAT to their customers, but not the surcharge.However, they shall not be obliged to include these output taxes in a self-assessment or to pay the tax.Nor can they deduct input VAT on these activities.

In the event that real estate used for this activity is sold and the transaction is subject to VAT and not exempt, the taxpayer must charge, settle and pay the VAT accrued on this transaction, by means of form 309.

  1. Requirements
  2. Applicable equivalence surcharge
  3. Equivalence surcharge rates
  4. Start or cessation of activities under the special system
  5. Formal obligations