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Practical Handbook VAT 2022

Determining the amount to pay or refund

The result of the Value Added Tax settlement under the simplified system is determined at the end of each financial year.However, the entrepreneur or professional shall make a payment on account on a quarterly basis.

In general, the Value Added Tax settlement for the performance of each activity covered by the simplified system will result from the difference between the "tax payable on current transactions" and "tax borne on current transactions", relating to that activity, with a minimum amount of tax payable that will be determined for each activity by the Order approving the rates and modules for that financial year.

  1. Amounts accrued from current operations
  2. Amounts paid from current transactions
  3. Amount derived from the simplified system
  4. Quarterly charges
  5. Result of the simplified regime.
  6. Settlement diagram