The self-employed They expected to receive good news for the beginning of 2025. However, the plans outlined by the Treasury to free these workers from paying VAT have been paralyzed for the moment, as reported by UPTA.
He franchised VAT It allows the self-employed in this regime not to have to submit the quarterly tax return, which simplifies the procedures. The European directive that regulates this simplified regime places this threshold at the 85,000 euros. However, in the Spanish case, it was not fully defined where it would be located.
As ABC reported in August, the Treasury agreed with the social agents on a roadmap to implement the franchise regime, which would allow invoicing without VAT to professionals with small business volumes.
The self-employed who will be exempt from declaring VAT
In recent days, some information assumed that this new regulation would apply in 2025, but that will not be the case. UPTA released a statement last week explaining that in recent days there has been confusion since what is going to be launched is a part of the European Directive 2020/285 that regulates this simplified regime, but that will not affect all self-employed workers.
In this way, the self-employed will have to continue submitting their quarterly VAT returns. According to UPTA, “only those self-employed who carry out their economic operations with other self-employed workers established in a European country where the franchised VAT system is active” are those who will be able to benefit from the regime.
The self-employed associations ask to continue negotiating
Lorenzo Amor, president of the National Federation of Self-Employed Workers Associations – ATA and vice president of the CEOE, also reported last Monday through social networks that “It is not true that in 2025 self-employed workers with incomes of less than €85,000 will stop submitting VAT”.
«Unfortunately, the transposition will only affect part of that directive. But not generally to the franchised VAT», continues the message.
For its part, UPTA emphasizes that they have been working for some time to ensure that the transposition of the European directive becomes fully effective: “We will demand that negotiations begin at the beginning of 2025.” Its president, Eduardo Abad, has considered it “bad news” and a “disappointment” that the franchised VAT is not going to be effective in general as it is an “important fact, especially for those who have small businesses.”
This is how franchised VAT works
Self-employed workers who take advantage of this modality may have more competitive prices, but VAT cannot be deducted from purchases either.
In this sense, financial experts recommend that each company must make calculations about whether or not it is convenient for them to benefit from it. Likewise, although the European ceiling is 85,000 euros, each state can regulate it downwards.
#reform #thousands #selfemployed #workers #submit #VAT
