The new cash VAT regime is a voluntary regime that can be applied to by companies with a turnover of less than 2 million euros, excluding VAT on said volume and which have not carried out cash transactions with the same recipient for an amount greater than 100,000 euros.
Procedure for inclusion in the special VAT regime of cash
To be eligible for inclusion in telegram korean list the special VAT cash regime, it must be requested by the taxpayer during the previous month of December through the corresponding census declaration requesting inclusion in the special VAT regime.
In the event that we begin economic activity during the 2014 financial year, we can request inclusion in the special VAT regime for cash at the same time as the request to register our activity in the same census declaration.
The special VAT cash regime has no permanence requirement and at any time, we can request to waive the application of said regime or, see if at any time we have a cause for exclusion for exceeding the volume of operations of 2 million euros.
Waiver of the application of the special cash VAT regime
In the event that we have opted to apply the special cash VAT regime and decide to leave this system, we will have to renounce its application by means of the corresponding census declaration to be presented during the month of December prior to the year in which the renunciation takes effect.
The waiver has a minimum period of effect of 3 years , so once we have waived, we will not be able to benefit from this system again until three full financial years have passed.
Exclusion from the special VAT regime for cash
On the other hand, the exclusion from the special VAT regime for cash only has effects for the financial year following the one in which the conditions have not been met. For example, we opt for the cash system during 2014 and in December we see that we are going to be excluded for exceeding the limit of 2 million euros.
During the 2015 financial year, we will have to pay VAT under the general regime, but if during that same financial year we again meet the conditions to opt for the special VAT regime for cash not exceeding 2 million euros, we can request the inclusion of the company in this system again during the month of December 2015 with effect for 2016.