The surcharge of equivalence is a system whereby retailers pay VAT in a simplified form. This is a special system that affects individuals, either as self-employed, civil societies and joint property.
This surcharge applies specifically to the business of retail items that have not been processed by the trader; that is, when it is merely an intermediary who buys from a distributor to sell to the public. Dealers, stores, etc.
How it works: your supplier who is VAT and surcharge equivalency bills you pay and report it in their statements.
Here are the fees:
- For the general rate of 21%: 5.2% surcharge
- For the reduced rate of 10%: 1.4% surcharge
- For the super-reduced rate of 4%: 0.5% surcharge
- For snuff: surcharge of 1.75%
How can you avoid it?
If you can bill more than 20% of your sales professionals and business customers, you can go to the general VAT system in the following year. You should keep that figure in order to continue in the following. It is necessary to inform the Treasury and provide invoices and documents proving the change.
There are a number of exempted products from the equivalence arrangements:
- Motor vehicles, vessels and aircraft, as well as accessories and spare parts.
- Pieces of jewelry and precious metals and stones that are used for their production.
- Articles of natural leathers.
- Works of art and antiques.
- Second-hand goods.
- Equipment and accessories for poultry farming, beekeeping.
- Petroleum products whose manufacture, import or sale is subject to excise duty.
- Machinery for industrial use.
- Material and construction articles.
- Minerals, except coal.
- Iron, steel and other metals and alloys, not manufactured.
- Investment gold.
If you work in the retail of products that do not manipulate and are not among those listed, you have to welcome you to charge deequivalencia, unless factures more than 20% with businesses and professionals.