As previously indicated, companies will be able to apply this rule from 1 January 2014 , which will allow them to declare VAT at the time invoices are collected and not, as until now, based on the date of issue.
Application criteria
We have also mentioned that the application of this criterion will be voluntary and that once adopted, the accrual criterion cannot be returned to until three fiscal years have elapsed. Anyone telegram korean list who wishes to adopt this system must notify the Tax Agency at the start of the activity or during the month of December prior to the start of the calendar year in which they wish it to take effect.
Only companies with a turnover of less than 2 million euros per year may apply for the cash regime . Those who have opted to apply this regime will be excluded from it when their turnover during the calendar year has exceeded this amount. If the activity had been started during the calendar year, a pro rata calculation will be applied to calculate this amount.
Obligations of the regime
The fact of being included in this regime will entail a series of obligations. Companies covered by the special regime of the cash basis must include the following information in their invoice registration books :
The dates of collection or payment, partial or total, of the operation, with a separate indication of the corresponding amount, in each case.
Indication of the bank account or the means of collection or payment used, which can prove partial or total collection or payment of the transaction.
By applying this criterion, it is applied to those companies that receive these invoices. This will force companies that apply the cash criterion to indicate this situation on their invoices , including the mention “special regime of the cash criterion” in the document.
It should be noted that a company that does not use the cash criterion and has suppliers that do apply it must use both systems simultaneously .
Invoices for transactions subject to the special cash-based regime must be issued at the time of their execution , except when the recipient is a businessman or professional acting as such, in which case the issue must be made before the 16th of the month following the month in which the transaction was carried out.
Cash collections
Companies that use the cash basis will have to have greater control over cash collections . Apart from complying with the regulations in this regard, it will be grounds for exclusion from this special regime if cash collections from the same recipient during the calendar year exceed 100,000 euros.
This exclusion will be effective in the year immediately following the occurrence of these circumstances and companies excluded for this reason may opt for it again in subsequent years in which they do not exceed these limits.