Delete the IVA of the self-employed is a measure that is part of the policies of establishing criteria for greater social justice in taxation. Keep in mind, in this sense, that a reform has already been approved that introduced progressive parameters in the settlement of personal income tax. In Consulting Confislab, tax advice in Palma de Mallorca We want to inform you of the effects of what is going to modify the obligation to declare VAT that, currently, self-employed workers have.
What is the main change pursued by this new tax reform??
This is an exemption from VAT settlement for the self-employed, in line with the adoption of a tax regime for these workers already implemented in other European countries. We refer to the VAT franchisee regime.
Consequently, Self-employed people would no longer have to submit quarterly VAT returns. Yes indeed, The obligation to formalize an annual declaration that compiles the invoices issued will remain in force..
Will all self-employed people be exempt from VAT??
In Consulting Confislab We work with the certainty that this exemption will not apply to all self-employed workers, although at a high percentage. Those who earn less than 85 000 euros and who, carrying out intra-community operations, do not reach 100 000 euros.
What objectives does this tax reform pursue??
The main purpose of this measure is to lighten the periodic tax obligations of the self-employed.. These workers carry out VAT collection intermediation work for the State. In small and medium-sized companies, Complying with these procedures every month implies an administrative burden that does not facilitate the agility of your operations..
On the other hand, There is the problem of customers who do not pay on time., which leads to treasury complications for the self-employed. Apart, If SMEs do not have to apply VAT to their products and services for sale, They can be more competitive compared to large companies, since they are in a position to present an offer with more adjusted prices.
Who is negotiating this measure??
It is the social agents who, in collaboration with the Treasury and with the consensus of the major parties, They are sharing the initiative of the negotiations.
- The majority unions: The CCOO of the UGT.
- The employer coordinators: CEPYME y CEOE.
- Associations representing self-employed workers: UPTA, ATA y UATAE.
What deadlines are being considered for the implementation of this reform??
Although it is being negotiated since 2022, It was in March 2023 when this news broke. The adoption of the VAT franchisee regime derives from a community directive that will come into force during 2025 but whose transposition is not mandatory. Nevertheless, The social and political consensus reached suggests the approval of this measure around January 2024.
Ultimately, in Consulting Confislab are accounting advice in Palma de Mallorca is prepared for the application of this tax reform. It will benefit small self-employed people, will streamline your tax procedures and provide you with competitiveness. If you have doubts, ask us!
Do you want to know how we can help you in your business??
We visited our offices in
C/ Archduke Luis Salvador, 15 Bass
07004, Palma (Balearic Islands)
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