The Council of Ministers approved on October 25th, 2013 the development of a new special VAT cash regime that beginning in 2014 will allow both small and medium-sized businesses and self-employed to defer the tax payment to the time of receiving the billed amount. This is a very advantageous change concerning the extensive criterion of accrual, allowing the business owner to pay the tax once the bill is paid rather than when it is issued.
This new instrument made available to small and medium-sized businesses and self-employed with a business volume/total revenue of fewer than two million Euros will provide them with liquidity and a comparative advantage over other companies situated in other European Union countries such as Germany and Portugal, where the maximum limit to benefit from this advantage is at € 500,000.
For more information on VAT in Spain,
