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What is the VAT equivalence surcharge?

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

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