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Organising Corporate Life - Monthly VAT returns

Company Taxation: Getting VAT repaid quickly

 

 

  • In general, input VAT is returned during the six months after the year of payment. Therefore you need to do the return for the first, second, third and forth quarters for year 00 and wait for the return of input vat, in May, June or July in year 01. In addition, the Agencia Tributaria has until 31st July to give the tax payer the excess VAT back, and often takes until that time to give the VAT back.
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  • To complicate the situation even more, the Agencia Tributaria is very prone to not pay large amounts, but to ask for an inspection of books, before releasing the money.
  • Therefore, we recommend that companies do the following to get onto the monthly VAT scheme. This means:
all tax returns up to date tick naming resident representative tick books of account up to date tick

The monthly VAT scheme

A company can get onto the monthly VAT scheme. It needs to complete a lot of requirements and have all books in order. In practice, to get on the scheme for monthly VAT returns you need to do the following:

  • Lodge a form stating the intention to get on the scheme. The form is called a "Declaración Censal de alta, modificación y baja en el Censo de Empresarios, Profesionales y Retenedores" ,
  • and lodging a form communicating the reasons to be on the scheme, called a  "Comunicación de datos relativa al régimen especial del grupo de entidades en el Impuesto sobre el valor Añadido" form
  • the a previous application has been accepted to get onto the VIES register as an exporter.

Monthly obligations

  • Monthly lodging on line of the VAT return  (modelo 303 "Impuesto sobre el Valor Añadido. Autoliquidación").
  • More crucially the lodging every month of the modelo 340 "Declaración informativa de operaciones incluidas en los libros registro".

This means that books need to be in good order all the time.