VAT is one of the taxes that most worries freelancers and SMBs. This post reviews the rates, deductions and most common forms.
VAT rates
- 21%: general rate for most goods and services.
- 10%: reduced rate for some food products, transport, hospitality, etc.
- 4%: super-reduced rate for basic products such as bread, milk, eggs, fruit and vegetables.
- Exempt: operations without VAT in certain cases (for example, some health or educational services).
Deductible VAT
The VAT you pay on purchases and expenses related to your activity is deductible, as long as you have the correct invoice. ERP DLM automatically calculates the supported VAT for each purchase invoice.
Form 303
Form 303 is the quarterly (or monthly if you are in SII) VAT declaration. ERP DLM generates it from your issued and received invoices, broken down by type and period.
Form 347
Form 347 reports transactions with third parties exceeding certain annual amounts. ERP DLM calculates it from the CRM and invoices, avoiding figure errors.
Conclusion
Keeping VAT up to date is easier when your ERP calculates it for you. Try it free.