If you are starting a business or professional activity, you may have to face some expenses and prior to the commencement of such activity investments and to retrieve the VAT on expenditure initials.

The installation of local, legal advice costs, formalities with relevant government and other preparatory expenses, causing the accumulation of VAT invoices before you can start the activity and the corresponding sales.

You should know that the 1 30 to January may request the refund of VAT paid on those costs, but the activity has not started yet; although there is no sale.

For this, the first thing to do is present a Census Declaration (model 036) in the Tax Agency, indicating the registration in the Employers and Professionals Census, by checking the box "504. Activity start communication. Deliveries of goods or services after the acquisition of goods or services. "

Thereafter, you can register all invoices of expenses related to the start of the activity and come January, request its return.

You should be aware that:

  • The above procedure involves compliance with legal and formal obligations, such as the keeping of accounts, records VAT books, filing periodic statements VAT on expenditureAs well as corporate income tax if the activity is exercised through a society.
  • Goods and services purchased must be clearly related to the activity that is being prepared and not be subject to personal use, to avoid conflict with the tax. You may perform a procedure that authority checking invoices and paperwork preparatory activity, prior to the return of VAT on expenditure.
  • The period between the expenses incurred and the beginning of activity (even if provided) must be reasonable, taking into account the type of activity undertaken.
  • For the purposes of Social Security it is considered the activity undertaken, so that a worker or self-responsibility will have to be registered and listed.

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