Can self-employed be VAT registered?

Can self-employed be VAT registered?

Where to register as self-employed

When it is a question of invoices related to the worker’s work activity, the deduction is valid and the justification must be presented to the Inland Revenue. But, what are the requirements to accept these documents, what is valid and what is not valid for the Tax Agency?

One of the requirements that the Tax Agency establishes to accept this deduction is that the professional has a supporting document or invoice that accredits the expense and that it can be verified that this is necessary for the professional to carry out his work activity.

In this sense, the supporting documents accepted by the Tax Authorities are the original invoice of the good or service acquired. This invoice must contain information on the good or service acquired, who issued it, as well as the details of the professional or self-employed person who acquired it.

When articles are imported, the professional will have to present to the Treasury the document in which it appears what has been acquired, its cost and the data of the company and of the beneficiary. In the case of operations assimilated to imports, information should be provided on the self-assessment in which the tax accrued on the occasion of their realization is recorded.

Register as a self-employed person in Spain

Each self-employed person or company in the production chain transfers its VAT to the next link until it reaches the final consumer. Furthermore, depending on the products or services that the self-employed worker delivers or renders, he/she must apply one VAT rate or another. There are three different VAT rates: general VAT, reduced VAT and super-reduced VAT.

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This means that any online store that invoices more than 10,000 euros to consumers in other countries of the European Union must invoice at the corresponding VAT rate of the country of destination.

The special VAT equivalence surcharge scheme is a special VAT class that mainly affects retail businesses. Below you will find detailed information on this special scheme and how to apply it if you are eligible to do so.

Not all commercial transactions with member countries of the European Union are subject to VAT, as they depend on the VAT rate. Intra-community deliveries or acquisitions, services rendered, etc.

How much does it cost to register as self-employed

If you are going to carry out an economic activity, you will be obliged to register with the Tax Authorities. When carrying out an activity you are incurring in a taxable event of the IAE. For it you will have to register in the Tax on Economic Activities.

Its regulation is found in articles 78 to 91 of the Revised Text of the Regulatory Law of the Local Treasuries (TRLRHL). The definition given to this tax of a real and obligatory nature is:

“The Tax on Economic Activities is a direct tax of a real character, whose taxable event is constituted by the mere exercise, in national territory, of business, professional or artistic activities, whether or not they are exercised in specific premises and whether or not they are specified in the rates of the tax”.

…an activity is considered to be exercised in a business, professional or artistic capacity” – that is, an economic activity is exercised – “when it involves the management on one’s own account of means of production and human resources, or of one or both of them, with the purpose of intervening in the production or distribution of goods or services, or in the production or distribution of goods or services, or in the production or distribution of goods or services”.

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Registering with the Spanish tax authorities

If I do not exceed the SMI, can I invoice without registering as self-employed? Do you control the criterion of habituality? Because this is the answer to all the previous doubts. Today we approach the subject in GesTron with the help, as always, of our colleagues of Ayuda T.

Maybe you are starting to sell things online, through ebay, Instagram, Amazon or any other platform and, although you have income, you are far from making a profit, these are not constant or maybe they do not represent a significant amount or that by far will allow you to make a living on your own.

What happens is that there are a lot of doubts when we talk about minimum income to be self-employed. How much can be billed without being registered or have news from the Treasury and Social Security?    It is always the same, you can read it in many of the queries I receive on the blog.

Whether it is for the mere fact of entrepreneurship, for the lack of job opportunities in the context of crisis (infinite) in which most of us live or because of the need (or because you feel like it) to generate extra income, the point is that developing self-employment is an option that is there and is gaining followers.

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