The Special Regime for Monthly VAT Return (REDEME) is a type of exceptional regime that consists of monthly return of the Value Added Tax, instead of annually, as in the general regime.
It was invented to try to favor the exporting companies, since they could only request the refund of the VAT supported in January, with the declaration of the fourth quarter, so that they had a credit with Hacienda for more than a year that caused important financial tensions.
Which companies are included in REDEME?
On the one hand, they are obliged to all companies included in the monthly return scheme, whatever their total billing amount.
On the other hand, all companies that meet these requirements may apply for inclusion:
- Not included in the simplified VAT scheme (modules).
- Not have been excluded from this record in the last three years.
- Be aware of your tax obligations.
Apply for inclusion at REDEME
In order to benefit from this scheme, the following models of finance must be presented:
- Model 036 for the Census Declaration of registration, modification and reduction in the Census of Employers, Professionals and Retainers.
- Model 039 for the communication of data relating to the special scheme of the group of entities in VAT.
The request must be made electronically during the month of November of the year prior to which it will be applied. As of January 1st, you will already be enrolled in REDEME.
Initiated the year, the company will liquidate the Model 303 every month and will be entered or will be requested the return of the result obtained. In addition, for information purposes, the Model 340 will be presented to indicate the contents of the VAT registration books, reflecting both the purchases and the sales of that paid month.
Unsubscribe from REDEME
This year, companies that want to cancel will be able to do in June and, in this way, to avoid continuing to be part of the SII.
Until now, only the Special Regime of Monthly VAT Return could be withdrawn in the term that the Tax Agency opened in November. The rest of the year was only waiting for that date.
It should be remembered that their minimum period of stay is one year. It can be renewed tacitly if the company continues to submit the statements monthly during the following year, without having to re-submit a Model 036.
Final Conclusion on REDEME
Register in REDEME is a very interesting option for those companies that have higher supported fees than reverberated, as is often the case between companies that operate abroad, since they issue invoices without VAT but their expenses in Spain are subject to the Tax on The Value Added.
It should be analyzed if the option of obtaining monthly VAT refunds will lead to an increase in liquidity, since if the result is to enter, it may not interest you. In addition, it should be noted that many administrative resources should be devoted.
If your company needs advice on REDEME in relation to register or unsubscribe or complete any of the forms, contact us. At GM Tax we will treat the case in particular and we will put to your disposal our experience with the Tax Agency to find the best solutions.