With effect from 1 January 2014, Spain will introduce an optional cash accounting scheme for businesses with turnover less than EUR 2 million.  The main features are:

  • The threshold applies to taxable persons with a turnover not exceeding of 2 million Euros for the previous year.
  • The application to use the scheme is optional.
  • The scheme is applicable to all transactions taking place within the Spanish VAT territory.
  • The cash accounting scheme is not applicable to certain transactions, including:
    • Transactions under the special schemes for farmers, retailers, investment gold, services rendered by electronic means and VAT groups.
    • Supplies eligible for the exemption to intra-Community supplies, export and assimilated.
    • Intra-Community acquisitions.
    • Reverse-charge.
    • Imports and assimilated.
    • Self-consumption.
By |October 8th, 2013|