What is the VAT liability and when does it occur?
Posted: Mon Jan 06, 2025 8:23 am
All persons, whether natural or legal, who are required to comply with the tax obligations related to a commercial transaction are subject to VAT . That is, they will be required to pay this tax and comply with this fiscal responsibility.
In this article we will discuss the figure of the VAT taxpayer, focusing on the delivery of goods and services and leaving for another time the treatment of the taxpayer in imports and intra-community operations .
Certus-Collaboration on passive subject
What is the taxpayer in VAT?
Generally speaking, those who are considered to be liable for VAT are individuals or legal entities who are business owners or professionals and who supply goods and services subject to said tax.
Thus, and in accordance with the provisions of article 5 of the VAT Law (LIVA), the following will be considered as entrepreneurs or professionals who may be subject to VAT:
Individuals or entities that carry out business japan number data or professional activities, except those that exclusively deliver goods or provide services free of charge.
Commercial companies, unless proven otherwise.
Those who make one or more deliveries of goods or provide services that involve the exploitation of a tangible or intangible asset in order to obtain income over time (in particular, lessors of assets will be considered as such).
Those who carry out the urbanization of land or the promotion, construction or rehabilitation of buildings intended, in all cases, for sale, award or transfer by any title, even occasionally.
Those who occasionally make deliveries of new means of transport exempt from tax.
What are the obligations of the taxpayer?
As we will analyze below, it is important to distinguish between the person or entity that carries out the taxable operations and the person obliged to comply with the tax obligations , who is the person we will classify as the passive subject and will have the obligation to pay the tax and to comply with the rest of the formal obligations.
VAT taxpayers shall be obliged, subject to the requirements, limits and conditions determined by regulation, to:
Submit declarations regarding the commencement, modification and cessation of activities that determine their subjection to tax.
Request the tax identification number from the Administration, communicate it and certify it in the established cases.
Issue and deliver invoices for all operations, adjusted to what is determined by regulations.
Keep accounting records and records established in the manner defined by regulations, without prejudice to the provisions of the Commercial Code and other accounting standards.
Periodically or at the request of the Administration, submit information relating to its economic operations with third parties and, in particular, a summary declaration of intra-community operations.
Submit the corresponding returns and settlements and pay the resulting tax amount.
What models should the taxpayer use and what should he or she communicate?
Firstly, and on the occasion of the start of its operations, the taxpayer must communicate its registration as a taxpayer using form 030/036 .
From this moment on, you will be required to submit the corresponding periodic declarations, in general, using Form 303 for Self-Assessment of Value Added Tax, as well as Form 390 for Annual Summary.
In this article we will discuss the figure of the VAT taxpayer, focusing on the delivery of goods and services and leaving for another time the treatment of the taxpayer in imports and intra-community operations .
Certus-Collaboration on passive subject
What is the taxpayer in VAT?
Generally speaking, those who are considered to be liable for VAT are individuals or legal entities who are business owners or professionals and who supply goods and services subject to said tax.
Thus, and in accordance with the provisions of article 5 of the VAT Law (LIVA), the following will be considered as entrepreneurs or professionals who may be subject to VAT:
Individuals or entities that carry out business japan number data or professional activities, except those that exclusively deliver goods or provide services free of charge.
Commercial companies, unless proven otherwise.
Those who make one or more deliveries of goods or provide services that involve the exploitation of a tangible or intangible asset in order to obtain income over time (in particular, lessors of assets will be considered as such).
Those who carry out the urbanization of land or the promotion, construction or rehabilitation of buildings intended, in all cases, for sale, award or transfer by any title, even occasionally.
Those who occasionally make deliveries of new means of transport exempt from tax.
What are the obligations of the taxpayer?
As we will analyze below, it is important to distinguish between the person or entity that carries out the taxable operations and the person obliged to comply with the tax obligations , who is the person we will classify as the passive subject and will have the obligation to pay the tax and to comply with the rest of the formal obligations.
VAT taxpayers shall be obliged, subject to the requirements, limits and conditions determined by regulation, to:
Submit declarations regarding the commencement, modification and cessation of activities that determine their subjection to tax.
Request the tax identification number from the Administration, communicate it and certify it in the established cases.
Issue and deliver invoices for all operations, adjusted to what is determined by regulations.
Keep accounting records and records established in the manner defined by regulations, without prejudice to the provisions of the Commercial Code and other accounting standards.
Periodically or at the request of the Administration, submit information relating to its economic operations with third parties and, in particular, a summary declaration of intra-community operations.
Submit the corresponding returns and settlements and pay the resulting tax amount.
What models should the taxpayer use and what should he or she communicate?
Firstly, and on the occasion of the start of its operations, the taxpayer must communicate its registration as a taxpayer using form 030/036 .
From this moment on, you will be required to submit the corresponding periodic declarations, in general, using Form 303 for Self-Assessment of Value Added Tax, as well as Form 390 for Annual Summary.