VAT CASH RECEIPT APPROACH
This optional special scheme allows
that sales and services are recorded as revenues for VAT purposes when
they are collected, deferring declaration and payment of output
VAT. Consequently, input VAT can
only be deducted when purchases are paid.
However, the cutoff date for the
deferral is the 31st of December of the year following the performance of the
operation.
SUBJECTIVE REQUIREMENTS
Cash receipt approach can only be applied to taxable persons whose turnover
in the previous calendar year has not exceeded €2.000.000. To calculate the
turnover, VAT law takes:
·
all
sales and services,
·
excluding
o
VAT
o
Sales
equalization percentage (where appropriate)
o
Sales
and services provided in previous years (where appropriate),
o
Occasional
supply of real estate,
o
Supply
of capital goods,
o
Supply
of investment gold,
o
Financial
operations
Operations excluded of cash receipt approach are considered to be carried
out at
the time of the operation.
OBJECTIVE
REQUIREMENTS
Cash approach can be applied to all operations carried out
in the territory of application of the tax but for
·
operations in simplified scheme or in the
special schemes of agriculture, equalization, investment gold, services provide
electronically or group of entities;
·
exports and EU operations;
·
EU acquisitions;
·
operations with reversal of taxable person;
·
imports and assimilated operations and
·
own use of goods and services.
CHARACTERISTICS OF THIS SPECIAL
SCHEME
VAT is accrued at
the time of total or partial collection and only for the amounts actually
collected. Consequently, the moment of collection must be proved.
The right to
deduct input VAT arises at the time of total or partial collection,
with a cutoff date of 31st December of the year following the
performance of the operation.
