EXPIRED CERTIFICATES ARE TEMPORARILY VALID

In accordance to Royal Decree 463/2020, of March 14th, those taxpayers whose digital certificate has expired are allowed to use the expired certificate within the alarm state.

In case the usual browser did not accept the expired certificate, the Spanish Tax Office recommends to install it in MOZILLA FIREFOX.

For further information, you can call any of the following telephone numbers:

901 200 347 or 91 757 57 77

http://www.fernandezbaladron.com

OBLIGATIONS OF SELF-EMPLOYED ON OCCUPATIONAL HEALTH & SAFETY

Do freelancers really have no obligations regarding occupational health & safety? The answer to this question will depend on the SITUATION of the self-employed.

In general terms, a freelancer who has no employees is not obliged to comply with occupational health and safety regulations; on the other hand, a freelancer with employees MUST comply exactly the same health and safety regulations as any other company.

Besides, a freelancer who SHARES FACILITIES OR WORK AREA with other workers is obliged to comply with occupational health & safety regulations, even if he has no employees. This case is commonly known as „COORDINATION OF BUSINESS ACTIVITIES“.

Notice that prevention regulations require the employer to have a preventive plan, risk assessment, preventive measures and specific training for the position. This also includes knowing how to properly use personal protective equipment and coordinating business activities.

In such cases, the simplest way of fulfilling legal requirements is counting with an EXTERNAL PREVENTION SERVICE, which can help you in the professional comply with preventive regulations.

For further information: luisa@fernandezbaladron.com - http://www.fernandezbaladron.com

VAT MINI ONE STOP SHOP

Since 2015, all telecommunication, broadcasting, TV and electronically provided services (hereinafter “TBTSE”) are taxed in the state of establishment of the recipient.

This rule has incredibly increased indirect tax burden. To reduce it, on January 1st 2019 it was established that, when TBTSE provided to final consumers located in other EU states do not exceed €10,000 (VAT excluded) they will be taxed in the state of the service provider, although the taxpayer may opt for taxation in other UE state where he is established.

Also with the aim of reducing indirect tax burden, an optional VAT scheme is created: Mini One-Stop Shop (hereinafter MOSS), a scheme that allows TBTSE entrepreneurs and professionals submitting their VAT returns only in the state in which they have registered as TBTSE operators.

Since January 1st 2019, TBTSE entrepreneurs and professionals who are not established in a UE country may use MOSS scheme, provided that they are registered in a UE country for VAT purposes. Thus, two variants of MOSS are created: external and internal.

EXTERNAL MOSS

External MOSS is applicable to those entrepreneurs or professionals not established in a UE country who provide TBTSE to individuals established in the UE. If the state of identification (and, therefore, of taxation) is Spain, TBTSE entrepreneurs and professionals are obliged to register with a form 034, to submit a quarterly form 368, to pay their VAT in time, to keep records of operations included in MOSS and keep them for 10 years and to issue an invoice when the recipient of the operations is established in Spain.

INTERNAL MOSS

Internal MOSS is applicable to those entrepreneurs or professionals established in the UE but not in the country of consumption, who provide TBTSE services to individuals established in an UE country.

TBTSE entrepreneurs or professionals whose country of identification is Spain are not allowed to deduct input VAT supported in the operations performed in MOSS in their 368 quarterly declarations, but they are entitled to ask for the refund of input VAT correspondent to operations which have been carried out in the state of consumption.

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VAT CASH RECEIPT APPROACH

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.

 

 

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WHO IS OBLIGED TO FILE INCOME TAX DECLARATION IN 2018?

Taxpayers are obliged to file annual Income Tax declaration 2018 to the Spanish Tax Agency when they have received ANY of the following incomes in the amount indicated:

1.       WORK OUTPUTS exceeding the annual amount of 22.000 gross

a.       When they come from an only payer

b.       When they consist of passive benefits (article 17.2.a of Income Tax Law), even if they come from two or more payers, provided that:

                                                               i.      the Tax Agency has determined the amount of the pertinent withholdings (by prior presentation of a form No. 146 by the taxpayer),

                                                             ii.      the actual number of payers does not enhance the number initially declared in the form No. 146,

                                                           iii.      the amount of the passive benefits actually received by the taxpayer does not exceed the amount initially declared in more than 300 € and

                                                           iv.      none of the circumstances determining the increase in the type of withholding has occurred within the year.

2.       WORK OUTPUTS exceeding the annual amount of 12.643 €:

a.       when they come from more than a payer and the amount obtained from the second and subsequent payers exceeds 1.500 € (except when the taxpayer had died before July 5^th 2018),

b.       when the related work outputs are not subject to withholding,

c.       when they consist of compensatory maintenance for the spouse economically affected by the divorce,

d.       when they are subject to a fixed retention.

3.       WORK OUTPUTS exceeding the annual amount of 12.000€, when they come from more than one payer, the amount obtained from the second and above exceeds 1.500€ and the taxpayer had died before July 5^th 2018.

4.       RETURNS ON PROPERTY INVESTMENT exceeding 1.000€

5.       YIELDS FROM CAPITAL exceeding 1.000€

6.       YIELDS FROM CAPITAL not subject to withholding

7.       ATTRIBUTED INCOME FROM URBAN BUILDINGS exceeding 1.000€

8.       HOUSING ALLOWANCE for the acquisition of social housing or housing with controlled price.

9.       INCOME FROM BUSINESS ACTIVITIES exceeding 1.000€

10.   CAPITAL GAINS exceeding 1.000€

11.   CAPITAL LOSSES exceeding 500€

12.   Taxpayers with the right to deduct their investment in HABITUAL RESIDENCE, DOUBLE INTERNATIONAL TAXATION, PENSION PLANS, etc.

13.   Taxpayers who want to request a REFUND derived from IRPF regulations.

(Article 96, 34^th and 18^th transitional provisions of Income Tax Law; article 61 of Income Tax Regulation)

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