November is approaching, and with it the deadline to apply for registration in the Monthly VAT Refund Register, also known as REDEME, has begun.
This voluntary system is characterised by the monthly settlement of VAT, instead of quarterly, which is particularly favourable for companies that, due to the type of operations they carry out, usually bear more VAT than they charge. This results in the possibility of claiming VAT refunds monthly, rather than annually, which clearly improves their cash flow needs.
Previously in our blog, we have discussed the advantages and disadvantages of this system, and below we will detail the main requirements for registration:
– Application for registration using form 036.
– Non-existence of debts with the Tax Agency.
– Inability to carry out activities under the simplified system.
– Not having been excluded from this system in the previous three years.
– In groups of entities, all those that apply must meet the requirements, and the application will be made by the parent company, in relation to all the others that apply.
If the application has been submitted correctly in November, the registration will take effect at the beginning of the following year, and if no express notification has been received within three months of the application, it will be deemed to have been rejected.
If you believe that you meet the requirements, and that this system can be beneficial for your company, MDG Advisors is at your disposal.
Isabel María Díaz Rubio
