In this case, we are facing the elimination of VAT for the self-employed who have a turnover of less than the amount that we have just mentioned. This has been advanced by the director of the Department of Tax Management of the Tax Agency. we would be before a new regime with which a large part of the self-employed in our country will benefit.
Without VAT below 85,000 euros per year
Although not much more is known yet, especially if it will finally be approved. Both the Treasury and self-employed organizations are studying to carry out this tax change that, at least, will affect more than one million taxpayers in our country. Basically, because it would be possible to eliminate VAT for those workers who invoice less than 85,000 euros per year (100,000 euros if there are intra-community operations). And not only this, but, in this possible new regime, there is also talk of end the regime of income tax modules.
In this way, those self-employed workers who do not reach that amount each year, will be able to take advantage of the next VAT franchise regime that will exempt workers from the obligation that exists right now, include VAT on issued invoices and, not only this, but they could also forget about having to present the quarterly statements of this Value Added Tax, which are currently carried out.
This possible change of regime already had a consensus within the different representatives of the Treasuryin addition to the organizations CEOE, Cepyme, CCOO, ATA, UATAE and UPTA, which, since the end of August of last year, were already participating in a working group created within the Institute of Fiscal Studies (IAE).
Therefore, it is estimated that approximately more than one million self-employed workers in Spain would benefit from this possible change. However, even if the obligation is removed, would still be optional. Everything will depend on the type of business that each worker has, since, depending on this, they will be able to take advantage of the VAT invoice and declare this tax.
When would it go into effect?
If this new tax regime for self-employed workers is finally approved, it could be applied from 2024 or 2025. For example, on the part of some representatives, they believe that, if this change is allowed to be promoted, as of April of this year, the new VAT franchise regime could already be applied in 2024.
However, from the Treasury they do not give deadlines. In addition, from this ministry they remember that the community directive already has this VAT regime, since it exists in all the countries of the European Union, except in Spain. However, it would not enter into force until 2025. Therefore, the group of representatives mentioned above is working so that this change can be applied earlier and, above all, to see how and to whom it can be applied.