New conditions for deferring VAT

The Tax Agency has decided to clarify the new conditions for deferring VAT. Without a doubt, it has decided to do so due to the commotion caused a few days ago with the new conditions for deferring taxes.

You will remember that last week we told you in this article about how the conditions for deferring tax payments had changed.

In the case of VAT, only the deferral of payments of unpaid invoices would be allowed. If those invoices had not been collected, they should only be paid once settled.

At ETL ILIA, we fully support the change of direction that the Tax Agency has decided to take. It is the most appropriate because it will lighten the burden on SMEs and self-employed workers, which we know our clients need a lot of.

Can VAT be deferred now?

The answer is yes, but it will not be at any price. The Tax Agency has published an instruction with the new conditions for the payment of VAT on its website.

If you are interested, you can read the full instructions on its website.

The new conditions for deferring VAT are established according to some parameters we will discuss below if you want to take advantage of the latest features.

New conditions

Following the many complaints from professionals in the sector and thanks to the vigorous complaint of the National Federation of Self-Employed Workers (ATA), the following conditions have been set for SMEs and the Self-Employed:

• Up to €30,000: the Tax Agency accepts deferrals for this amount without having to justify anything. They have decided to assume that this amount corresponds to VAT not yet paid and grants the presumption of innocence.
• 12 months to pay: the changes from now on grant 12 months to pay the total amount. The deferred amount will be paid through monthly instalments. In the same way, you can ask to pay in fewer instalments, but never over more than 12 months.

As you can see, there are a few changes, but they are essential. After the storm, calm has arrived. The Tax Agency has shown itself to be in favour of helping SMEs and the Self-Employed in this complicated matter, understanding that it was the best solution for everyone.

Can more than €30,000 be deferred?

Although it seemed that it would not be possible, in the end , it will be accepted by the Tax Agency with some conditions that you should be aware of. This way, you can take advantage of them whenever you need to.

To defer amounts greater than the €30,000 mentioned, the following points must be taken into account:

• Provide guarantees: as these are very high figures, the Tax Agency will ask for guarantees to defer the amount.
• Maximum 36 installments: no more deferrals may be requested. You can ask to pay in fewer instalments but not more than the 36 provided.
• Justifying unpaid VAT invoices: in this case we are only talking about VAT. To defer payments of more than €30,000, you must justify the reason for requesting the deferral.

As you can see, everything has been improved, but logically, for higher amounts, more information is requested.

Conclusions

After the complaints, the Tax Agency has decided to take the most Solomonic solution, and we, from ETL ILIA, applaud this new decision. We know that it is the right one and we are delighted because our clients will be able to benefit from it.

SMEs and the self-employed already bear enough burden not to be able to split tax payments.

Has our article been helpful to you? Do you still have doubts?

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If you need to know more, you can consult our Tax Advice service.