We are in July, which means that we must present the settlement of the second quarter of VAT 2020,where you must declare all VAT obtained with your sales and profits from the last three months, and enter the corresponding amount once you have deducted the supported fees from the expenses related to your activity. The deadline is until July 20.
A process that is once simple, but the reality is that making VAT settlement is much more complicated than it seems, especiallyif you don’t have accounting knowledge, taxation. Therefore, it is best to leave vat settlement in the hands of expert tax advisors,so that you have the guarantee that you will not make any mistakes that could result in an economic penalty in the future by the Tax Agency.
In any case, in this post we want to explain how to make the VAT 2020 settlement correctly,so that you can do it yourself without risk of errors.
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VAT 2020 settlement: What should you consider?
VAT settlement consists of paying VAT for the last quarter by presenting the 303model, taking into account the VAT obtained by the sales, and deducting deductible expenses that are related to the performance of your activity.
Both sales and expense VAT must be justified by invoices, whichmust also be recorded in company or self-employed accounting.
You will need to calculate both input VAT (expenses) and VAT passed on (sales), taking into account that input VAT is not always deductible. And subtract the deductible expenses from the total VAT passed on to obtain the amount you will have to pay to the AEAT, which can be: pay, return or compensate.
> How to fill out the 303 model?
Once you have calculated the VAT to be paid, you will have to fill out and present the 303 model at the TaxAgency, which is the form through which vat settlement is presented, and which has 8 sections to complete. This is where many doubts and problems arise:
- 1. Identification: You must fill in this section with your personal data.
- 2. Accrual : Refersto the quarter of the year to which the settlement corresponds.
- 3. Settlement: The difference between deductible VAT and VAT passed on shall cover from box 01 to box 44.
- VAT passed on:
- 01 – 09: line income must be separated according to the VAT rate (4%, 10% or 21%). The tax base (revenue without VAT) must first be included, then the VAT rate and finally the VAT quota.
- 10 – 11: indicate the taxable bases taxed on total intra-Community acquisitions of goods and services.
- 12 – 13: tax bases and contributions accrued for the investment of the taxable person where they are not intra-Community acquisitions.
- 14 – 15: modification of bases and quotas.
- 16 – 24: invoices to customers under the equivalence surcharge regime.
- 25 – 26: changes in bases and quotas of the equivalence surcharge.
- Deductible VAT:
- 28 – 39: the taxable bases and the amount of the deductible supported quotas shall be indicated, after applying the pro rata rule, differentiating between current transactions or investment goods:
- 40 – 41: only if changes have been made.
- 42: only under special agriculture, livestock and fishing regime.
- 43: regularization of deductions for investment goods.
- 44: only in the fourth quarter, when the cessation of activity occurs.
- VAT passed on:
- 4. Compensation: If the result is negative, we request compensation with the result of the next quarter.
- 5. No activity: Where no economic activity has been maintained in that quarter.
- 6. Return: Return is requested when the result is negative, in the last quarter of the year.
- 7. Login: Account number included.
- 8. Complementary: Declaration of the same quarter to correct a quantity.
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> Take advantage of the new draft VAT
Since last February, pre-303 support has been available, through which taxpayers included in the Immediate Supply of Information (SII) will be able to obtain a draft quarterlyVAT, just as it could so far be done with the draft Income.
Although for now it is a pilot test, a draft VAT would greatly facilitate the liquidation that millions of taxpayers have to make in our country every quarter.
We hope to have resolved the doubts to make the VAT 2020 settlement yourself and without errors. In any case, our recommendation is that you entrust this procedure to the team of tax advisors of
who will be in charge of preparing and filing your VAT return with full guarantee,without having to worry about anything.