During the month of November, companies based in Spain have the possibility of voluntarily applying for inclusion in the monthly VAT refund register (REDEME). This register has an interesting financial attraction for those companies that need to improve their cash-flow in terms of VAT refunds as, through monthly returns, they will be able to apply for such a refund, which is normally quicker than the general annual refund that takes place in January for companies filing quarterly returns.
Being on the monthly refund register implies greater obligations, such as settling VAT on a monthly basis (form 303) and the obligation to keep the VAT register books through the AEAT’s Electronic Headquarters with the well-known SII (Immediate Supply of Information), increasing the administrative cost for the company.
However, the advantages provided by this system in conjunction with the SII are greater:
– Obligations are reduced, as there will be no need to file Forms 347, 340 and 390.
– The information provided by each company can be easily compared with that of other companies using the SII.
– Errors are reduced and management is simpler. Minimising errors can also avoid penalties and surcharges from the tax authorities.
– The deadline for filing monthly self-assessments is extended by 10 days.
– The time taken by the tax authorities to issue refunds is reduced because the checks are carried out more quickly.
– The information requests made by the tax authorities are reduced, as the information is already in their possession and they do not have to ask companies for it.
Weighing up the advantages and disadvantages and depending on the organisational and financial structure of the company, it may be interesting to opt for this system in November for the 2024 financial year. If you have any doubts about REDEME or SII, please do not hesitate to contact MDG Advisors.
Marina Guerrero Castronuño.