Specific obligations

Entities that apply the special regime of the group of entities will have the following tax obligations:

• The dominant entity will represent the group of entities before the Tax Administration. In this regard, the dominant entity must comply with the specific material and formal tax obligations arising from the special regime of the group of entities.

• Both the dominant entity and each of the dependent entities must comply with the obligations established in article 164 of the VAT Law , with the exception of the payment of the tax debt or the request for compensation or return, and must proceed, for this purpose, in accordance with the provisions of obligation 2 of the following section.

• The dominant entity, without prejudice to the fulfillment of its own obligations, will be responsible for the fulfillment of the following obligations:

  1. Communicate the following information to the Tax Authority:

     1. In compliance with the requirements, the adoption of the corresponding agreements and the option to apply the special regime.

        All this information must be submitted in the month of December prior to the start of the calendar year in which the special regime is to be applied.

     2. The list of entities in the group that apply the special regime, identifying the entities that cause any change in their composition compared to the previous year, if applicable. This information must be communicated during the month of December of each calendar year with respect to the following year. However, if entities have been incorporated into the group in the month of December, the information relating to said entities may be submitted until 20 January of the following year.

     3. Any modification that affects the entities of the group that apply the special regime. This communication must be submitted within the self-assessment period corresponding to the settlement period in which it occurs.

     4. The waiver of the special regime, which must be exercised during the month of December prior to the beginning of the calendar year in which it must take effect, both in relation to the waiver of all entities applying the special regime and in relation to individual waivers.

     5. The option for the advanced level (article 163exies.five of the VAT Law), which must be exercised during the month of December prior to the beginning of the calendar year in which it must take effect. This option will refer to the set of entities that apply the special regime and are part of the same group of entities, will be valid for a minimum of one calendar year and is understood to be extended unless waived.

     6. Waiver of the advanced level of the special regime, which will be valid for a minimum of one year.

  2. Submit the aggregated periodic self-assessments of the group of entities, proceeding, where appropriate, to pay the tax debt or request compensation or refund as appropriate. These aggregated self-assessments will integrate the results of the individual self-assessments of the entities that apply the special regime for the group of entities.

     The aggregate periodic self-assessments of the group of entities must be submitted once the individual periodic self-assessments of each of the entities that apply the special regime of the group of entities have been submitted. However, if any of these self-assessments have not been submitted on time, the aggregate self-assessment may be submitted without prejudice to the actions that may be taken due to the lack of submission.

     The liquidation period for entities applying the special regime for the group of entities will coincide with the calendar month, regardless of their volume of operations.

     Entities that are excluded from the special regime will apply, where appropriate, the general tax regime from the settlement period in which this circumstance occurs, submitting their individual self-assessments, monthly or quarterly, depending on their volume of operations. in accordance with the provisions of article 71 of the VAT Regulations. In particular, when the exclusion from the special regime takes effect on a date other than that corresponding to the beginning of a calendar quarter and the excluded entity must submit its self-assessments on a quarterly basis, said entity shall submit a quarterly self-assessment for the period of time remaining until the completion of said quarter.

     When for a settlement period, the total amount of the balances to be returned in favor of the entities that apply the special regime of the group of entities exceeds the amount of the balances to be entered by the rest of the entities that apply the special regime of the group of entities for the same settlement period, the refund of the excess may be requested, provided that four years have not elapsed from the presentation of the individual self-assessments in which said excess originates.

     This refund will be carried out in the terms provided in section three of article 115 of the VAT Law . In such case, the offset of such balances to be returned in subsequent aggregate self-assessments will not proceed, regardless of the period of time elapsed until such return becomes effective.

     In the event that the special regime of the group of entities ceases to apply and there are amounts pending compensation for the entities integrated in the group, these amounts will be attributed to said entities in proportion to the volume of operations of the last calendar year in which the special regime would have been applicable.

     When a business or professional includes the offset balance resulting from one of his or her individual self-assessments in an aggregate self-assessment for the group of entities, the offset of that amount cannot be made in any individual self-assessment corresponding to a subsequent period, regardless of whether or not the special regime for the group of entities is subsequently applicable.

  3. Have an analytical information system based on reasonable criteria for the imputation of goods and services used directly or indirectly, in whole or in part, in carrying out the operations referred to in article 163 octies.one of the Law of VAT . This system must reflect the successive use of these goods and services until their final application outside the group. The information system must include a report justifying the imputation criteria used, which must be homogeneous for all entities in the group and maintained during all periods in which the special regime is applicable, unless they are modified for reasonable reasons, which must be justified in the report itself. This information system must be kept for the duration of the tax limitation period.

• In the event that any of the entities comprising the group of entities submits an individual self-assessment late, the applicable surcharges and interest will be applied, without the fact that the balance of the individual self-assessment was originally included in an aggregate self-assessment of the group of entities having any impact on such effects. If the aggregate self-assessment corresponding to the group of entities is submitted late, the surcharges will be applied to the result thereof, with the dominant entity being responsible for their payment.

• Entities applying the special regime for the group of entities shall be jointly liable for the payment of the tax debt arising from this special regime.

• Failure to maintain or maintain the information system will be considered a serious tax violation by the parent entity. The penalty will consist of a proportional monetary fine of 2 percent of the group's operating volume.

  Inaccuracies or omissions in the information system will be considered a serious tax violation by the dominant entity. The penalty will consist of a proportional monetary fine of 10 percent of the value of the goods and services acquired from third parties to which the inaccurate or omitted information refers. The dominant entity will be the offending party for failure to comply with the specific obligations of the special regime of the group of entities, including the obligations arising from the payment of the tax debt, the request for compensation or the refund resulting from the aggregated return-settlement corresponding to the group of entities, being responsible for the truthfulness and accuracy of the amounts and qualifications recorded by the dependent entities that are included in the aggregated return-settlement. Entities that apply the special regime for the group of entities will be liable for infringements arising from failure to comply with their own obligations.

• Actions aimed at verifying the proper fulfillment of the obligations of entities that apply the special regime of the group of entities will be understood with the dominant entity, as its representative. Likewise, actions may be taken with dependent entities, which must comply with the tax authorities. Any verification or investigation carried out on any entity in the group of entities will interrupt the limitation period for the tax relating to all the entities in the group from the moment the dominant entity has formal knowledge of them. The minutes and settlements arising from the verification of this special regime will be issued to the dominant entity.