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Practical Handbook VAT 2021

Seasonal activities

Seasonal activities are considered to be those that usually only take place during certain days of the year, continuous or alternating, provided that the total does not exceed 180 days per year.

The tax liability under the simplified system resulting from subtracting the tax payable on current transactions from the tax payable on current transactions shall be multiplied by a corrective index, depending on the number of days the seasonal activity lasts.

The seasonal correction indexes are as follows:

  • Up to 60 days of season:1.5
  • from 61 to 120 days of season:1.35
  • 121 to 180 days of season:1.25

In the case of seasonal activities, the entrepreneur or professional must submit the quarterly self-assessments within the deadlines established by the tax regulations, even if the tax payable is zero.

Example:

Mr. R.H.G. works as an ice-cream parlour, being registered under epigraph 676 of IAE during the summer months.Every year the activity starts on 16 June and ends on 15 September.

Its activity data for the financial year 2020 were as follows:

  • Number of people employed:1 person working 650 hours.
  • Electrical power:10 kW contracted.
  • Tables:4 tables for 4 persons.

The activity data for the financial year 2021 are as follows:

  • In addition to the 650 hours worked by him, he hires a part-time person, who works a total of 360 hours.

  • The electrical power and the number of tables is the same as in the previous year.

  • 903.47. The amount of the input tax for current transactions amounts toDetermine the interim income and the annual fee for the year 2021.

Solution:

  1. Determine whether the activity is seasonal:

    The activity is seasonal in that it is carried out regularly during a certain period of the year and lasts less than 180 days;92 days.

  2. Determination of the accrued contribution.As it is not possible to determine the base data as at 1 January, the previous year's data are taken:
    • During 2020 he was active for 92 days.
    • Staff employed:650 hours/1800 h(*) = 0.36 persons
    • Electrical power:10 kw x 92 days/365 days = 2.52 kw
    • Tables:4 desks x 92 days/365 days = 1.00 desks
    • (*) 1 non-salaried person = 1800 h.

    Annual fee:

    • 0.36 persons x 3,817.55:1,374.32 euros
    • 2.52 kw x 141.72:357.13 euros
    • 1.00 tables x 46.05:46.05 euros
    • Total: 1,777.50 euros

    Daily accrued fee: During 2020 he was active for 92 days.

    1,777.50 / 92 days = 19.32 euros/day.

  3. Determine the payment on account:
    QuarterDaily rateNo. days quarterProfit/(loss)Percentage(1)Correction indexIncome a/c
    1st 19.32 euros/day x 0 days 0 x 0.06 x 1.35 ---
    2nd 19.32 euros/day x 15 days 289.8 x 0.06 x 1.35 23.47 euros
    19.32 euros/day x 77 days 1,487.64 x 0.06 x 1.35 120.49 euros
    Calculation of the annual fee

    Note to the table:

    (1) The modules and percentages are those established by Ministerial Order HAC/1155/2020, of 25 November, for the calculation of the quarterly activity quota for the financial year 2021 (BOE of 4 December).(back percentage)

  4. Calculation of the annual fee.During the year 2021 he was active for 92 days.

    The final settlement for the year 2021 is presented during the first thirty days of January 2022.

    Staff employed:

    • 650 hours/ 1,800 hours = 0.36 persons
    • 360 hours/ 1,800 hours = 0.20 persons
    • Total: 0.56 persons

    Electrical power:10 kw x 92 days /366 days = 2.51 kw

    Tables:4 desks x 92 days /366 days = 1.00 desks

    Current operations accruals:

    • 0.56 persons x 3,817.55 euros/person:2,137.83 euros
    • 2.51 kw x 141.72 euros/kw:355.72 euros
    • 1.00 tables x 46.05 euros/table:46.05 euros
    • Total: 2,539.60 euros

    Current operations input tax:

    • Amounts paid:903.47 euros
    • 1% difficult to justify:25.39 euros
    • Total: 928.86 euros

    Calculation of the annual fee:

    1. Current operations accruals:2,539.60 euros

      Current operations supported dues:-928.86 euros

      Total: 1,610.74 euros

      Seasonal corrective index:(1,610.74 x 1.35) = 2,174.5

    2. Minimum contribution (2.539,60 x 20%(*) = 507,92 euros

      Seasonal corrective index:507.92 x 1.35 = 685.69 euros

      Result of the annual fee:2,174.50 euros

      (*) Percentage fixed for the determination of the minimum quota for current operations.

Settlement 4th Quarter:
  • Result of the annual fee:2,174.50 euros
  • Income on account of the financial year:-143.96 euros
  • To enter: 2,030.54 euros