Law 14/2013 to support entrepreneurs and their internationalisation amends, among others, various provisions of the Value Added Tax Law. Specifically, in the area of the accrual of the outlined tax, it adds the option of taking the so-called cash basis scheme.
The bodies that qualify for this scheme are the newly incorporated companies or those with an operations volume lower than 2 million Euros.
In operations where this regime is applicable, the tax will be accrued at the time of full or partial payment of the price. It is important to note that the right to deduct the tax will arise with the payment.
Royal Decree 828/2013 of 25 October, amending the Value Added Tax Regulation, regulates the application of the cash basis. In addition to obligations of registration, companies benefiting from this special scheme shall issue invoices mentioning the “special regime cash basis.”
Vilá Abogados
For more information, please contact:
12th of December 2013
