The retail and equivalence charge VAT are very close. This tax mechanism applies mostly to traders who sell to the end user, although there are some exceptions.
The equivalence surcharge in a special compulsory VAT regime for companies and professionals who retail products without carrying out a transformation in them. An example of this type of business would be a clothing store, which purchases the garments from the manufacturer and sells them to the end customer.
As its name suggests, it carries an added tax for the company or the self-employed to which it applies. In this sense, registering with the Treasury determines whether or not the equivalence surcharge should be paid.
Source: ivaconsulta.com
Latest Posts in "Spain"
- Draft Law to Implement First Phase of EU’s VAT in the Digital Age (ViDA) Directive
- Spanish Tax Agency Dismantles €300 Million VAT Fraud Ring in Hydrocarbon Sector, Arrests Five
- Tax Agency Dismantles Major VAT Fraud Network in Spanish Hydrocarbons Sector, 300 Million Euros Defrauded
- Spanish Tax Agency Dismantles €300 Million Hydrocarbon VAT Fraud Network, Arrests Five
- Spanish Tax Agency Dismantles €300 Million Hydrocarbon VAT Fraud Network, Arrests Five in Major Operation
