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Discussion Starter · #1 · (Edited)
The 'austerity budget' undid with one small almost unnoticed piece of tax legislation any good it thought it had achieved by altering the still overly generous labour laws.

A friend whose husband owns a small construction business -a typical PYME - received a call from their tax lawyer informing them that from yesterday all invoices bearing an IVA add-on had to pay the IVA even if the invoice had not been paid. This new law is retrospective for the past twelve months...

This means in practice that whether or not they have been paid for work done, IVA on that invoice must be paid in advance. Prior practice in most countries is that an unpaid invoice is carried over to the next VAT/IVA quarter by when the invoice will presumably have been settled - some companies have payment periods of up to ninety days.

Now PYMEs will have to pay as yet unreceived sums of money, which could be considerable. The amounts involved could conceivably be greater than the cost of any redundancy payments even at the still excessive new rate.

Spain needs to reduce debt and deficit to get back on some sort of even keel. To do that there must be in place, along with equitable and just austerity measures, policies to promote growth. Where are they in this budget? The above mentioned law will hinder growth and could put some PYMEs out of business.

The increases in gas and electricity prices will hit hardest those on low incomes and will also affect business which will inevitably pass on these higher costs.

Have the politicians in Spain, like those in the UK, no idea how ordinary people conduct their lives? Do they not know that the owners of many PYMEs are less well-off than many employed workers?? Do they know how an economy functions??

The NI Assembly has come up with a novel tax, known as the 'Tesco tax' whereby business rates on larger companies have been increased and redistributed to ease the tax burden on small business. Of course there has been the usual moaning from Tesco but as a NI Assembly spokesman pointed out, the cost to Tesco will be £66000 p.a. , less than Tesco got from the sale of handbags on New Year's Day....

So this budget is worth a mass peacful demo, not for its grinding of the poor into the dust but because of its sheer lack of innovation, imagination and grasp of what is needed to bring the inevitable period of austerity to a speedy end.

Two unconnected points: a mass gathering of far-right groups is taking place this weekend in Denmark. The aim: to stop the threat to Europe of an Islamist 'takeover'.
As I said elsewhere,we ignore the politics of ethnicity and nationalism at our peril.

And secondly...apologies to Solwriter if you are reading this for my not commiserating on your headache....I was about to when all communication was brought to a halt when my laptop battery gave out....:)
 

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The 'austerity budget' undid with one small almost unnoticed piece of tax legislation any good it thought it had achieved by altering the still overly generous labour laws.

A friend whose husband owns a small construction business -a typical PYME - received a call from their tax lawyer informing them that from yesterday all invoices bearing an IVA add-on had to pay the IVA even if the invoice had not been paid. This new law is retrospective for the past twelve months...

This means in practice that whether or not they have been paid for work done, IVA on that invoice must be paid in advance. Prior practice in most countries is that an unpaid invoice is carried over to the next VAT/IVA quarter by when the invoice will presumably have been settled - some companies have payment periods of up to ninety days.

Now PYMEs will have to pay as yet unreceived sums of money, which could be considerable.
There must be some misunderstanding , that has always been the case in Spain . Small businessess in Murcia had a demonstartion about it recently as they were owed 78 million in iva alone.
Rajoy was supposed to be changing it to not paying it until it was received.
 

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gus-lopez said:
There must be some misunderstanding , that has always been the case in Spain . Small businessess in Murcia had a demonstartion about it recently as they were owed 78 million in iva alone.
Rajoy was supposed to be changing it to not paying it until it was received.
Agree with gus- i read a few weeks back that it would be the opposite.
 

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Discussion Starter · #4 ·
Agree with gus- i read a few weeks back that it would be the opposite.
I hope my friend's tax lawyer was wrong - maybe he had not been looking after their tax affairs correctly, I don't know.

But my main point, that there are no growth measures, still stands...

And the new calculations for redundancy payments are still set too high imo.
 

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Look here
La ley de emprendedores que prepara el Gobierno y que se aprobará en los próximos meses dará libertad a las pymes para aplicar el régimen de IVA que más les convenga en función del tipo de operación. Así, una pequeña y mediana empresa podrá seguir pagando el IVA en el momento en que emite una factura en determinadas ventas y, en otras, abonar el impuesto en el momento de cobrar la factura.
From
Pagar el IVA al cobrar la factura será opcional para las pymes - CincoDías.com
 

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So what do people think of the tax amnesty? People who have been working on the black or stashing their money overseas to avoid paying tax will be able to pay 10% of their declared earnings and wipe the slate clean. The government says it will raise €25 billion, the opposition say it is a fraudster's charter. (Ironically they proposed something similar while they were in office, and the PP opposed it.)
 

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It just shows how desperate for money they are. it isnt the first time in recent times that this is done in Spain. once in the 80's, and then mid 90's.
Morally unacceptable, but we are in need of despeate mesures
 

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Discussion Starter · #8 ·
So what do people think of the tax amnesty? People who have been working on the black or stashing their money overseas to avoid paying tax will be able to pay 10% of their declared earnings and wipe the slate clean. The government says it will raise €25 billion, the opposition say it is a fraudster's charter. (Ironically they proposed something similar while they were in office, and the PP opposed it.)
I think of it the same as I think of the proposed reduction of the top rate to 45p in the UK......dream on, sunshine..:(

The Chancellor believes that this reduction will somehow drive those who have avoided the 50p tax to pay the lower rate, which, he says, will bring in an extra £29 bn in revenue.

He must have an Enid Blyton view of human nature, in that he clearly believes people from extremely wealthy backgrounds have a finely tuned moral sense..based on 5p.

The same principle applies in Spain: people who evade and sometimes those who avoid tax simply want to keep as much of their wealth as they can. That's understandable, whether their motivation is based on some ideological principle or, as is more likely, on naked greed..

But I am a believer in humankind as a social animal above all else and that we as individuals live through our shared sense of community, society, call it what you will. That enrtails moral obligations to contribute according to your means and ability to do so.

So...in my simple clear view: tax owed should be tax paid. No amnesties, no 'deals'.

Although the 50p tax rate cost more to collect than it brought in..but that's another matter.
 

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Look here
La ley de emprendedores que prepara el Gobierno y que se aprobará en los próximos meses dará libertad a las pymes para aplicar el régimen de IVA que más les convenga en función del tipo de operación. Así, una pequeña y mediana empresa podrá seguir pagando el IVA en el momento en que emite una factura en determinadas ventas y, en otras, abonar el impuesto en el momento de cobrar la factura.
From
Pagar el IVA al cobrar la factura será opcional para las pymes - CincoDías.com
So they have changed it then , you can continue as it was or now pay when you receive it . Makes more sense.
 
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