2023-05-25 12:47:11
The equivalence surcharge is a special VAT regime which is mandatory for retailers who do not carry out any type of transformation in the products they sell. Although this is usually applied to companies, it can also fall on civil societies, lying inheritances or community property, as long as the members “are all natural persons”, they explain from Legálitas.
However, not all activities should apply this surcharge, but There are some exemptions, among which are jewelry, natural fur garments or furriers, art objects and antiques.second-hand goods, motor vehicles, sale of boats and planes, gas stations, construction material or machinery for industrial use or minerals.
In this line, The self-employed who invoice more than 20% of their sales to professional clients and businessmen will also be able to get rid of the equivalence surchargeas long as they inform the Treasury, providing the supporting documentation and apply the general regime in the following fiscal year.
How is this special regime applied?
Applying this special regime means for the retailer pay general VAT plus a small surcharge on purchase invoices, in exchange for not having to submit VAT returns to the Treasury (model 303). In the event that the businessman makes international purchases, he has to self-recharge the VAT and present model 309 at the Tax Agency.
“The self-employed person who applies this regime greatly simplifies his VAT management since he pays his supplier directly and the regime is only applied when he buys merchandise“, aseguran desde Legálitas.
Types of equivalence surcharge
- He VAT rate of 21% applies 5.2% of equivalence surcharge.
- He VAT rate of 10% applies 1.4% of equivalence surcharge.
- He VAT rate of 5% applies 0.625% of equivalence surcharge.
- He VAT rate of 4% applies 0.5% of equivalence surcharge.
- He tobacco is engraved with a 1.75% of equivalence surcharge.
Implications of the equivalence surcharge
The trader You are not required to make the VAT declaration or keep accounting records, as long as it does not exceed 600,000 euros. billing, which simplifies the administrative and accounting tasks of the business.
Nevertheless, the VAT that is assumed -including the equivalence surcharge- is not deductible, so it cannot be recovered. From Legálitas they assure that “the amount of the Taxable Base, the VAT and the Equivalence Surcharge will be considered as an additional value in the purchase”. They further add that “This can be unattractive, especially for entrepreneurs making an initial investmentand some choose to establish a limited company in order to benefit from these deductions if the initial investment of the business is considerable”.
Another drawback is that it must inform suppliers that they are covered by the simplified regime of equivalence surcharge, so that they issue invoices in accordance with this modality.
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