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Cash basis

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Who the cash criterion is applied to

This optional special regime allows taxpayers to delay the accrual and subsequent declaration and payment of the VAT passed on until the moment of collection from their clients, although the payment will also be delayed. deduction of input VAT on your purchases until the moment you make payment to your suppliers ( double cash criteria ); all this will be limited to December 31 of the year immediately following that in which the operations are undertaken.

The main characteristics of the Special Scheme on cash basis are:

  • Subjective requirements:

    This special regime may be applied by taxpayers whose volume of operations during the previous calendar year has not exceeded 2,000,000 euros , understanding that the operations are carried out when the VAT would have been accrued if the special regime had not been applicable to them.

    Taxpayers whose cash collections from the same recipient during the calendar year exceed the amount of euros are excluded.

  • Optional regime:

    The regime can be applied by taxpayers who meet the above requirements and who choose to apply it when filing their start of activity declaration, or in the tax register declaration, during the December prior to the start of the calendar year in which it should become effective.

    The option will be understood to be extendable until it is renounced. This renunciation will be valid for a minimum of 3 years.

  • Objective requirements:

    The special regime will refer to all the operations undertaken by the taxpayer in the territory in which the tax applies

    The following are excluded:

    1. Those pursuant to special simplified regimes for agriculture, stockbreeding and fishing, equalisation tax, gold as an investment, applicable to services rendered electronically and from the group of companies.
    2. Deliveries of exempt goods as referred to in Articles 21, 22, 23, 24 and 25 of this Act (exports and deliveries of goods within the EC )
    3. The intra-Community acquisitions of goods (within the EC).
    4. Those in which the taxpayer is the businessperson or professional for whom the operation is carried out in accordance with article 84.One.2, 3 and 4 (cases of reversal of the taxpayer).
    5. Imports and operations assimilated to imports.
    6. Those referred to in articles 9.1 and 12 (self-consumption of goods and services)