Cash basis special VAT regime
DOI:
https://doi.org/10.51302/rtss.2013.3204Keywords:
Value Added Tax (VAT), special regimes, cash basis special VAT regime, accrual, imposition, deduction, declaration of insolvency, obligatory VAT ledgers, invoiceAbstract
The legislator, by virtue of the Law of Entrepreneurship (and the amendments to the VAT Statute) introduces a new special VAT regime, the cash basis regime, broadly demanded by certain business & professional sectors, which pretend to lessen the financial costs associated to this tax.
It is a voluntary regime in which the taxpayer may opt for the «double cash system» if its turnover for VAT purposes does not exceed 2.000.000 €; the taxpayer defers the tax accrual and its inclusion in the tax return until the moment it receives the payment, totally or partially, from its clients, with the deadline of the 31st December of the subsequent year in which the transaction took place; in turn, the taxpayer defers its right to deduct input VAT borne in its acquisitions until it is paid to its suppliers, with the same time limitations.
The present article deals with the analysis of the new regime in its three main dimensions: defining its subjective framework, the content of the regime (which affects not only taxpayers who have opted for it, but also to their clients or recipients of their transactions) and the formal obligations, with a special emphasis in the sensitive issues that it application may trigger.
Downloads
