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VAT practical manual 2021.

Introduction

The basic ideas of this regime are as follows:

  1. Incompatibility of the simplified regime with any other Value Added Tax regime. Compatibility only exists with the special regimes for agriculture, livestock and fishing, with the equivalence surcharge and with certain activities established by regulation.

  2. Full coordination between the simplified regime and the objective estimation regime in the Personal Income Tax , in such a way that all activities covered by the simplified VAT regime will determine its net performance by the objective estimation regime.

  3. Coordination with the special regime of agriculture, livestock and fishing: The waiver of the simplified regime means that the entrepreneur or professional is excluded from the special regime for agriculture, livestock and fishing if he or she carries out any activity covered by this regime. Likewise, if a business owner or professional waives the special regime for agriculture, livestock and fishing, he or she will be excluded from the simplified regime as a result of carrying out some activity under the general regime.