All companies and self-employed workers are obliged to report to the Treasury,through the payment of different taxes such as Personal Income Tax, VAT or Corporation Tax among others.
And although the Tax Agency increasingly has more effective mechanisms to carry out all these administrative procedures, the truth is that mistakes can be made in procedures with the Treasury due to carelessness or ignorance.
The problem is that any mistake made when carrying out a procedure with the Treasury, whether intentional or not, will lead to a fine or sanction by the Tax Agency, which will vary according to the irregularity committed. In short, errors in procedures with the Treasury can be very expensive, so we must take extreme precautions.
In order to help you anticipate these failures, below we review the main errors when carrying out procedures with the Treasury to which you must pay attention.
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What types of Treasury notifications exist and should you know?
The most common errors in procedures with the Treasury that you should avoid
1- Billing errors
Although the Treasury will not usually thoroughly review our invoices, it could request an inspection if it detects any type of irregularity in billing.
Billing errors are possibly the most common,such as indicating an incorrect VAT rate, the lack of any customer data or putting the numbering wrong.
It is important to be attentive and in case of detecting errors in any invoice, issue an amending invoice as soon as possible to alert the Tax Agency and avoid problems in the future.
2- Errors when choosing the heading in the IAE
All self-employed and entrepreneurs must pay the Economic Activities Tax (IAE) to be able to exercise their activity.
And although it is true that in practice most taxpayers do not have to exercise their payment, they are obliged to declare it, having to choose the heading in the IAE that best suits the activity performed.
It is important not to make a mistake when choosing the heading in the IAE,since each activity has its own that you must know and make it clear when filling out your registration in the Treasury. Depending on the chosen heading, your taxation will vary.
3- Declare vat past the scheduled date
The Tax Agency establishes deadlines for declaring VAT that must be met. Based on the quarterly VAT declaration, which is the most used by the majority of self-employed and businesswomen, VAT must be declared before the 20th of the month following the end of each quarter.
In the case of the annual VAT settlement, the deadline is until January 30.
If this date is passed and vat is declared after the deadline, The Treasury will apply a surcharge that will vary depending on the delay,which may be up to 20% if more than a year passes without presenting form 303, to which the corresponding default interest would have to be added.
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4- Do not register in social security
In order to start your business activity you have the obligation to register both in the Treasury and also in the Social Security. The problem is that many self-employed and entrepreneurs make the mistake of registering in the Treasury but not in the Social Security,which could be grounds for sanction.
In that case, the date of registration will count from the moment you registered with the Treasury, having to pay the self-employed fee plus the corresponding late payment interest from the date of registration.
5- Deduct vat on goods before being registered with the Treasury
All goods and materials purchased to exercise your professional activity can be deducted VAT, but for this it is mandatory that you have previously registered with the Treasury.
If you buy the material without having processed the registration in the Treasury and you try to deduct the VAT you will be committing a mistake that may be sanctioned by the Tax Agency.
conclusion
It is important that you exercise extreme caution when carrying out procedures with the Treasury to avoid mistakes that may lead to economic sanctions. From AYCE Laborytax we put at your disposal our team of tax advisors and specialized and experienced accounting advisors, who will advise you and will be responsible for ensuring compliance with all your tax obligations, always within the law.
