Tributación por módulos de autónomos

There are many freelancers who often wonder if it is possible to tax by modules.

These doubts should not be strange, given that the group of self-employed persons who have decided to benefit from the module regime have continued to undergo changes in recent years.

In this article we want to help you clear your doubts about module taxation in 2020,so that you know the requirements that the self-employed person has to meet to tax in this way.

What is module taxation?

Module taxation is one that does not take into account the profit or profit that has actually been achieved, but an estimate. This shall be calculated in accordance with the provisions of the Module Order, multiplying the amounts fixed by the number of units used therein.

For example, you would consider the hours you work, the size of the premises, the employees you’ve hired, and so on.

This system is also known as an objective estimation method and, as noted, will depend on the type of business you are conducting as self-employed.

Module taxation in 2020: What should you consider as self-employed?

By 2020, the module regime has undergone fundamental changes,especially in terms of its requirements, while maintaining the extension of the Tax Reform and the limits of the 2019 regime.

Taxing by modules will determine the basis of the calculation of the tax burden you must pay, as well as the calculation of the total amount that you must include in your income statement.

However, you must now meet a number of requirements.

Requirements for module taxation of the self-employed

Tributación por módulos de autónomos

> Professional activity included in the 2020 module order

First, the activity you carry out as an autonomous activity must be included in the order of modules established and regulated by the Ministry of Finance. It also sets a number of limits that cannot be exceeded.

> Billing volume

As for the turnover to qualify for the module regime for the next year 2020, it may not be more than 250,000 euros in total invoicing, thereis or is no obligation to issue an invoice. This amount has not changed from the previous year.

With this amount, what is being attempted is to find a balance between the 450,000 euros that had previously been needed and the one that is required from now on, which will be 150,000 euros in 2020.

On the other hand, autonomouss in the previous year have carried out operations with an obligation to issue invoices to companies and other professionals, and which have exceeded EUR 125,000 in yields in that period, are excluded from the IRPF module regime.

Similarly, if 50% of the revenue comes from companies, the yield limit will be 50,000 euros.

The limit of EUR 125,000 in force in the last three financial years is also maintained by 2020.

It should be noted that all those self-employed who develop an activity through which they must produce withholdings of 1%, will also not be able to tax by objective estimate from next year.

> Pre-farmer’s resignations or simplified VAT

Another requirement to be noted is that, above, the self-employed person cannot have renounced the special scheme for farmers or VAT in a simplified manner.

Nor can it carry out any parallel exercise which is paid by the direct estimation method.

It should be noted that taxation by objective estimation,on the one hand, and direct estimation,on the other hand, are incompatible.

Module taxation based on activity

For activity groups, specific limits are set differently.

> Agriculture and livestock

The limits for taxing per module are 250,000 euros in both sales and purchases from the previous year. The latter shall not include those intended for acquisition and freezing.

Tributación por módulos de autónomos

> fishing

In fishing activities, all self-employed persons whose activity is based on the production of mussels in punts may be accommodated.

> Trade and hospitality

On the other hand, retail activities include the entire sector,including newsstands, vehicle repair shops and other repair shops, while hospitality activities include bars, pensions, restaurants, fondas, hostels, ice cream parlors and cafés.

> Transport and construction

Transport, plantbreeders and construction may also be taxed by objective estimation unless they have to forcibly carry out a 1% withholding tax, as they were left out of the module system with the latest Tax Reform.

In the construction sector are included all those related to masonry, locksmithing, plumbing or painting.

On the other hand, transport includes the transport of goods, passengers and taxis. With regard to the transport of goods by road and moving services, the maximum limit of vehicles per business is 4.

> Other services

Other services such as hairdressers, beauty salons, schools, removals,dry cleaners and copy shops may also be taxed by modules.

On the contrary, a few years ago activities of an industrial nature, such as metal carpentry, themaking of metal or wooden furniture, the generation of serial clothing, some types of installations, etc., were excluded from the objective estimation system in modules.

Advantages of module taxation for self-employed people

Among the advantages that it gives the self-employed tax by modules is the not having to keep a detailed accounting of the logbooks.

These shall consist of a register of investment goods for taxpayers deducting depreciation and sales and revenue registration books for those holders of activities whose performance is determined by the volume of operation. That is, holders of agricultural livestock, anertic forestry and natural products processing activities.

In addition, the module system is usually much more cost-effective in the taxation of self-employed persons,since the amount is fixed and established by the Treasury. This, in turn, can provide high benefits.

Also, if you decide to perform module taxation, you should not forget to take into account the headings. Review the list of activities for the Economic Activity Tax that you should consult to be more sure that there is no direct estimate to be taxed. These headings can give you great security in this regard.



In conclusion,
taxing by modules can
give you a large number of advantages as a self-employed. However, you should not forget to consult the new limits and requirements of objective estimation.

Do you have any doubts? Consult Ayce Laborytax advisors and you’ll act on insurance.