3.2.3. Evolution of income for Value Added Tax

In 2016, revenue on VAT increased by 4.2 per cent. The effect of regulatory changes, positive changes and changes inherited from 2015 also had an impact (changes in settlement of imports VAT and increase in rates of certain goods and services in the last periods of that year). If we set aside these impacts and only consider the income on self-assessments (to avoid the effect of numerous inspections from the end of last year), the growth in revenue would amount to 3.3 percent, similar to the expense subject to VAT. Gross income from SMEs grew by 7% compared to the 0.8% increase in gross monthly revenues on importation VAT from Large Businesses and groups and other operators included in the monthly refund. However, bear in mind that since the change in 2015 to the way of paying importation VAT, the evolution of gross monthly revenues should be taken together with refunds, which fell by 7.8 percent (a portion of importation VAT is offset with higher revenues on monthly returns and another portion with lower refunds). If taken in this manner, net monthly income grew by 4.4 percent, closer to the SME figure.