11 Dec New draft VAT for the self-employed: what should you do and how will it help you?
The Ministry of Finance has announced its new pilot project: to send the self-employed a draft document with the quarterly VAT return. Its operation is similar to that of the Income Tax Return, so the self-employed will have to confirm it. This measure is part of the strategic plan of the Tax Agency 2019-2022. We will tell you what this document consists of.
The relationship that self-employed people have with the Tax Agency is constant, as they must present documents periodically. Therefore, any mechanism that facilitates these procedures is positive. Not only to simplify the process for the self-employed, but also to be streamlined by the Administration.
In this sense, 2020 begins with an important novelty. The Tax Agency will send drafts with the quarterly VAT return to present in February. The aim is to bring them into line with the IRPF, so that they are generated automatically and the self-employed only have to review and confirm them.
Advantages of the draft VAT for the self-employed
This action is a pilot project included in the 2019-2022 strategic plan of the Treasury. Initially it will only be carried out with a reduced base of taxpayers selected among those included in the Immediate Provision of Information. In addition, they must have a volume of operations of less than six million euros.
For the time being, the self-employed who will not receive the draft are those who are covered by the cash VAT system, who are included in a group of entities or who are included in the Register of Monthly Refunds. The expected benefits of this action include the following:
Guidance for the self-employed when completing the VAT return
Although it is a quarterly process, doubts when making the declaration can arise continuously. For example, when separating deductible expenses from non-deductible expenses. This draft will break down all the concepts, so you will only have to check that they are correct and confirm it.
Streamline bureaucratic procedures
Another of the main objectives of this pilot project is to speed up the steps taken by the Administration. The idea of implementing this document is to reduce the refund times of input VAT. In other words, the aim is for the self-employed person to receive the corresponding amount as soon as possible.
Favouring voluntary compliance with the VAT declaration
The simpler the process, the more likely it is that the self-employed will submit the declaration voluntarily within the time limit for doing so.
Improve the assistance service of the Tax Agency
Helping the self-employed to carry out such important tasks as this is a way of providing a comprehensive service of assistance, and making the Treasury visible as a point of support and reference for them. For this reason, it will implement a virtual support service together with this draft.
Consolidate electronic management
The draft can be sent electronically. This not only simplifies the paperwork, but also ratifies AEAT’s intention to increase its portfolio of digital services, in line with the current trend.