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VAT practical manual 2021.

Scope of application of the simplified system

The simplified regime applies, unless resignation is made in due time and form, to those who meet the following requirements:

  1. That they are natural persons or entities under the regime of attribution of income in the Personal Income Tax, provided that in the latter case, all their partners, heirs, community members or participants are natural persons.

  2. That they carry out any of the activities included in the Ministerial Order that regulates this regime, provided that, in relation to such activities, they do not exceed the limits established for each of them by the Ministry of Finance and Public Function.

  3. Their income volume in the previous year does not exceed any of the following amounts:

    • For all of its activities, except agricultural, forestry and livestock, 250,000 euros annually.

      For these purposes, all operations will be counted, regardless of whether or not there is an obligation to issue an invoice.

    • For the set of agricultural, forestry and livestock activities determined by the Minister of Finance, 250,000 euros annually.

      For these purposes, only operations that must be recorded in the Record Books will be counted.

  4. That the volume of acquisitions and imports of goods and services for all economic activities carried out, excluding those related to fixed assets, does not exceed 250,000 euros ( VAT excluded). Within this limit, subcontracted works and services will be taken into account and acquisitions of fixed assets will be excluded.

  5. That you have not given up your application.

  6. That he has not waived or is excluded from the objective estimate in Personal Income Tax .

  7. That none of the activities carried out by the taxpayer are directly estimated in the Personal Income Tax or in any of the VAT regimes that are incompatible with the simplified one. For these purposes, the activities covered by REAGP and the special regime of the equivalence surcharge are compatible.