Dear businessman, we have come up against VAT

Back to VAT and the endless reforms that turn our tax system into a paradise of legal uncertainty, the Government today announces a series of measures to collect between 6 and 8 billion extra Euros, always with the sword of Damocles of the deficit hanging over Brussels.

There are VAT changes; adequate payments are limited, and some others will create a lot of controversies. Usually, this is the case, but they should start to consider the opinion of business people if they want this country to continue to recover.

Always with a vocation for public service, from Ilia Consultoria, we propose to do a 1×1 of the new measures so that you can understand them better:

VAT reform. Coitus interruptus

After a first attempt to apply the famous SII, comes the second installment of the saga. This time it seems that the Government is determined to force companies to provide all VAT information in real time. This could potentially streamline processes and reduce errors. Of course, this means a major change in the internal management of companies. Small businesses and self-employed people will be exempt from this measure, for the moment.

Limiting cash payments to €1000. A diminishing measure

After having limited cash payments to €2000 a few months ago, the Government has decided to tighten the noose even further. One might think doing it all at once rather than gradually reducing the amount would be good. The good news is that there is not much more left to reduce. If you are a business owner, we recommend forgetting about cash payments.

Corporate Tax Reform: Groundhog Day

Not even the most daring thought that the Government would be capable of reforming the core tax for companies once a year, but they already know that reality always surpasses fiction. We will have to wait to know the details of the reform, although tax advisors are beginning to study futurology. Difficult times are coming for business people, so let’s hope the Government reconsider.

Special taxes: Smoking kills and ruins

Taxes on high-alcohol beverages and tobacco are being increased, which continue to suffer from a tax escalation due to their bad consequences for the health of those who consume them.

These measures will provoke more than one discussion between good businessmen and the nation’s Government. What do you think? Are they going too far? Your thoughts and feedback are valuable in shaping these reforms.