Declarar el IVA aunque haya estado cerrado mi negocio

With quarterly VAT settlement just around the corner, with the maximum deadline for filing taxes for the second quarter of 2020 on July 20, many people wonder if they have to vat on their businesses even if they were closed during the Alarm State.

If this is your case and you had to stop the activity due to the coronavirus, this post interests you, because we will tell you if you have to declare VAT of your business or not, if it was closed in the Alarm State.

You are interested in:

Fiscal Calendar for 2020: The guide for your company to fulfill its obligations to the Treasury.

Coronavirus closed business: Should they declare VAT?

The health crisis caused by the coronavirus has caused many businesses to have kept their doors closed during the State of Alarm, meaning that many taxpayers have not earned any income.

According to data from the National Federation of Autonomous Workers’ Associations (ATA) in early June, nearly halfa million freelancers and entrepreneurs kept their businesses closed, and as early as July, a large percentage of these businesses still do not return to business.

The problem is that the 2020 fiscal calendar has not been changed despite the coronavirus,which means that the self-employed’s obligations to the Tax Agency are maintained, as long as it has been discharged

That said, self-employed persons and employers in the General VAT Scheme will have to declare VAT on 20 July at most through the 303model, even if their businesses were closed during the State of Alarm. If they do not, they may receive an economic penalty of at least EUR 150.

The VAT return will vary depending on different factors such as the volume of the activity or the level of revenue and expenditure,and there are usually two options:

  1. Declare that no activity has been maintained.
  2. Declare that no income has been earned.

The election must be made in conscience, since although they may seem similar, one option or another will completely change the settlement result.

> Taxpayer VAT return without expenses or income

If a taxpayer has maintained their registration in the RETA but has not had any activity, they should only check the box “no activity” in model 303. The only drawback of this option is that input taxes cannot be deductible from expenses.

> Taxpayer VAT return with no income but expenses

A taxpayer who during the State of Alarm has not had income but expenses, must complete model 303 informing of the expenses, which may be degreased if they are related to the activity. If you haven’t actually received any income, the result will come out negative.

Declarar el IVA aunque haya estado cerrado mi negocio

Will the Tax Agency refund VAT in negative?

When the result of VAT settlement is negative, it is offset in the following declarations,and the only option for the AEAT to return VAT in negative is that the result remains negative in the last quarter of the year. It will be up to the taxpayer to decide whether to opt for a refund or compensation.

The VAT to be cleared allows to deduct the negative balance of the positive jump of the next quarter,or what is the same: compensate the result of the settlements. If in the second quarter a negative balance of 100 euros is obtained, and in the third quarter a positive balance of 200 euros, you can use the NEGATIVE 100 euros to compensate them with the 200 euros of the following quarter, which would mean that you would only have to pay 100 euros.

The accumulated VAT to be compensated is maintained for four years.

If this situation is maintained and the taxpayer reaches the last quarter in negative, they may request a refund of VAT in negative,or continue to make up for it in future years.

The problem is that with the refund of VAT it can take more than 9 months to have the money in the account, so it must be the taxpayer who decides which option compensates you the most.



If your business was closed during the Alarm State and you didn’t have any income, but you kept your registration in the RETA, you’ll need to declare VAT for the second quarter. But as we’ve discussed, you have different options to choose from. If you have any questions, you can contact our tax advisors so they can help you.