Spain extends latest sign-up deadline for cash accounting
- 7 January 2014 | Richard Asquith
The initial sign-up window for Spanish companies wishing to join the new cash reporting VAT scheme has been extend to 31 March 2014.
Spanish VAT cash accounting to ease compliance burden
The Spanish VAT cash accounting scheme was announced last year to help small businesses better manage their cash flows. It enables companies to opt to only pay over VAT due on actual cash revenues received (instead of invoices issued), offset with input VAT on expenditure also actual paid out. It is only available for companies with an annual turnover below €2million. At the end of each financial year, any none-payments of VAT on completed supplies will automatically become due for payment.
Registered companies under the regime will have to complete specialised Spanish VAT returns. Intra-community supplies and import are excluded from the Spanish regime. The Canaries Island is outside of the scope of Spanish VAT, but will also implement the scheme.
A similar scheme VAT cash VAT accounting in Romania led to many problems because it was obligatory for smaller companies. This created difficulties on reporting and cash payments to other companies not within the scheme. As a result, Romania made its scheme optional from the start of 2014.