Practical example

Mr. "XX" has been involved in the coffee shop business, heading 672,1, since 2019.

The activity is carried out in a leased premises for which it pays 760 euros a month (more VAT). Since it began, the taxpayer has been subject to the simplified VAT regime and has carried out the activity with the following elements:

• Electrical power: 20 KW
• Tables:
  • 4 Tables for 4 people
  • 2 Tables for 2 people
• "B" type machines: 2 Machines

As for the staff employed in the business, the account holder and 2 full-time employees work throughout the year; One worker aged 18 hours, from 900 February, and two workers, from 1 July to 1 September, who have worked 30 hours each. 720

In 2021, the number of workers was 2 full-time workers throughout the year plus the person in charge of the activity.

Other details to be taken into account:

• On 1 July 2022, it purchased an electric oven for 450 euros and on 13 October it replaced the furniture for 2,000 euros.

• On 30 November, it acquired napkins, postavasos and other material in Portugal for 2,500 euros.

• At the end of the year, the total amount of VAT paid in current operations amounts to 9,330 euros.

  1. Calculate the payment on account for the first three quarters.
  2. Determine the annual fee for the activity.
  3. Determine the result of the final self-assessment for the fourth quarter.

• In 2022, the volume of transactions under the simplified regime amounted to 130,000 euros.

Solution:

1. Calculation of the payment on account:

   Activity: Coffee shop IAE : 672,1, 2 And 3
   Module	Definition	Unit	Annual accrued per unit
   1	Employee	Person	2,356.07
   2	Electrical power	KW contracted	124.00
   3	Tables	Table	70.86
   4	"A" type machines	"A" type machine	221.43
   5	"B" type machines	"B" type machine	832.60
   6	Commissions for lotteries	Euro	0.21
   Minimum fee for current transactions: 13% Of the accrued liability for current transactions

   Baseline data as of 1 January 2022:

   • Staff employed: 3 People x 2,356.07 = 7,068.21 euros
   • Electrical power: 20 Kw x 124.00 = 2,480.00 euros
   • Tables: 5 Tables x 70.86 = 354.30 euros
   • "B" type machines: 2 Machine x 832.60 = 1,665.20 euros

   • Total: 11,567.71 Euros

   • Payment on account (4% x 11,567.71) = 462.71 euros

   • Choose to deduct the VAT paid on fixed assets in the last quarter's tax return.

   • Quarterly payment 1T, 2T and 3T: 462.71 Euros

   • (See 1T of form 303, similar to 2T and 3T)

2. Annual fee for the activity:

   Activity: Cafeteria IAE epigraph: 672,1, 2 And 3
   Module	Definition	Unit	Annual accrued per unit
   1	Employee	Person	2,356.07
   2	Electrical power	KW contracted	124.00
   3	Tables	Table	70.86
   4	"A" type machines	"A" type machine	221.43
   5	"B" type machines	"B" type machine	832.60
   6	Commissions for lotteries	Euro	0.21
   Minimum fee for current transactions: 13% Of the accrued liability for current transactions

   Payment accrued by current transactions:

   • Staff employed: 4.10 People x 2,356.07 = 9,659.89 euros
   • Electrical power: 20 Kw x 124.00 = 2,480.00 euros
   • Tables: 5 Tables x 70.86 = 354.30 euros
   • "B" type machines: 2 Machines x 832.60 = 1,665.20 euros
   • Total: 14,159.39 Euros

   Fee derived from the simplified regime: The greater of the following amounts:

   1. Payment accrued by current transactions: 14,159.39 Euros

      Payments supported by current transactions:

      • Input fees: 9,330.00 Euros (*)
      • 1% Difficult justification: 141.59 Euros
      • 9,471.59 Euros
      • Difference: (14,159.39-9,471.59) = 4,687.80 Euros

      (*) The amounts borne by the rental of the premises are amounts borne by current operations and are therefore included in the total amount for this item. If the premises were its own, the payments borne in their acquisition would be deductible as fixed assets.

   2. Minimum payment: (13% Of 14,159.39 euros): 1,840.72 Euros

      Therefore, the payment derived from the simplified regime is 4,687.80 euros

      Annual fee:

      • Fee derived from the simplified regime: 4,687.80 Euros
      • Share of intra-community acquisitions of goods (2,500 euros x 21%): 525.00 Euros
      • Deductible fixed assets VAT (450 x 21% + 2,000 x 21%): - 514.5 Euros
      • Annual fee: 4,698.30 Euros

      Result of the final self-assessment:

      • Annual fee: 4,698.30 Euros
      • Income on account for the financial year: (462.71 X 3): - 1,388.13 Euros

      Result of quarter tax return: 4 3,310.17 Euros

      (See 4T of form 303)