According to the sole Additional Provision of Royal Decree 1042/2013 of December 27, published in the BOE on December 30, the deadline for SMEs and practising individual professionals who choose to apply the cash criterion has been extended until March 31, 2014 (initially, the deadline ended last December).

As of January 1, 2014, entrepreneurs and professionals who start their activity or who during 2013 have not exceeded 2 million euros (VAT excluded) in volume of operations may apply the new cash criterion in VAT, regulated by Law 14/2013, of September 27, on support for entrepreneurs and Royal Decree 828/2013, as long as they have not had cash collections from the same payer that exceed 100,000 euros.

This option will have to be done expressly before the Tax Agency. Those who begin the activity can submit the census declaration at the beginning of the activity (in both cases, using form 036). The option will be considered valid from the first settlement period that begins after making the option as long as the limits above are maintained. However, the interested party may renounce it.

For more information: http://www.boe.es/boe/dias/2013/12/30/pdfs/BOE-A-2013-13759.pdf

If you need to know more, you can consult our Tax Advice</a service. >.