We want to inform you about the key points of Real Decree-Law 14/2020, of April 14, which extends the term for the submission and payment of certain tax declarations and self-assessments.

These new measures will only be applied to those taxpayers who have a volume of operations not exceeding 600,000 euros for the purposes of Value Added Tax.

In this sense, the volume of operations shall be understood as the total amount, excluding VAT and, where appropriate, the equivalence surcharge and flat-rate compensation, for the delivery of goods and services rendered by the taxpayer during the previous year, including those that are exempt.

The following will not be considered:

  • Occasional deliveries of property
  • Deliveries of investment goods
  • Financial operations and exempt operations related to investment gold

For practical purposes, this amount is the one that appears in box number 108 of the Annual VAT Summary (Form 390) for the 2019 financial year presented in January 2020.

Those taxpayers who do not file VAT returns for carrying out exclusively exempt activities should take as a reference the Net Amount of the Turnover of Corporation Tax, or the equivalent in the case of personal income tax.

Based on the above, this new Royal Decree indicates that:

For companies and freelancers with an operating volume of less than 600,000 euros:

  • You will be able to file and pay tax declarations and self-assessments until May 20, 2020.
  • If the chosen form of payment is direct debit, the deadline for submitting self-assessments in this form will be extended until May 15, 2020.
  • If you have already filed and domiciled your taxes, the charge will not be made until May 20, 2020.

For companies and freelancers with a volume of operations greater than 600,000 euros:

  • You will have to file your returns within the usual period.
  • In the case of an amount to be entered, the entry deadline remains April 20.
  • Remember that if you are not a large company (volume of operations in 2019 less than 6,010,121.04 euros), you can defer your taxes, up to a total global limit of 30,000 euros, until October 20, 2020.
    • The first three months without interest.
    • The last three months with interest.

In any case, keep in mind that this extension of deadlines will not apply to:

  • Tax groups that apply the special tax consolidation regime of Corporation Tax, regardless of their turnover.
  • Groups of entities that are taxed under the special regime of groups of VAT entities, regardless of their volume of operations.
  • To declarations regulated by the customs code of the EU and its regulations.

Additionally, for any other query derived from the extraordinary and complicated current situation, do not hesitate to contact us.