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Practical Handbook VAT 2021


The basic ideas of this regime are as follows:

  1. Incompatibility of the simplified system with any other Value Added Tax system. There is only compatibility with the special regimes for agriculture, livestock and fisheries, with the equivalence surcharge and with certain activities established by regulation.

  2. Full coordination between the simplified regime and the objective assessment regime in for Personal Income Tax, so that all activities under the simplified VAT regime will determine their net income under the objective assessment regime.

  3. Coordination with the special regime for agriculture, livestock and fisheries: the renunciation of the simplified regime implies for the entrepreneur or professional the exclusion from the special regime for agriculture, stockbreeding and fishing if he/she carries out any activity covered by this regime.Likewise, if an entrepreneur or professional renounces the special scheme for agriculture, livestock and fisheries, he/she will be excluded from the simplified scheme as a result of carrying out an activity under the general scheme.