Proposal to count all 2017 VAT in regional funding

Automatic summary, not yet reviewed

1. The bill explains that the new SII system delayed the deadline for filing VAT returns, so only eleven months of revenue were recorded in 2017, with an effect of 4,150 million euros.
2. The bill would add a new provision to Law 22/2009 with rules for the 2017 final settlement: all VAT paid by taxpayers in 2017 would count as that year's revenue, even if it was recorded in the 2018 budget.
3. According to the bill, these rules would not change Law 22/2009, only clarify it, because that law already refers to cash-basis revenue and state revenue in the fiscal year.
4. The law would take effect the day after its publication in the Official State Gazette, except for measures affecting the current budget, which would wait until the next budget year.

Who it affects

• Autonomous communities under the common regime: They would avoid a cut in their final 2017 funding system resources.
• Companies using the SII system: Their 2017 VAT payments would count for the settlement even if recorded in 2018.
• The Ministry of Finance: It would have to follow these criteria when calculating the final 2017 settlement.

Words worth knowing

SII (Sistema de Información Inmediata)

A system through which companies report the invoices they issue and receive to the Tax Agency, for VAT purposes.

Liquidación definitiva

Final calculation of the resources each autonomous community receives under the funding system.

Criterio de caja

Cash basis: counting revenue when it is actually received, not when it is recorded in the books.

ITE

An index calculated from state VAT revenue that determines how several regional funding funds evolve.

Sujeto pasivo

Person or company required to pay VAT to the Tax Agency.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries