Monday, 1st June 2020
OTHER NEWS Article
Advertisment

This Month's Magazine
Malaga Tax Office is looking for you!

Malaga Tax Office is looking for you!

It is compulsory to have to register a business in Spain.

The following message was sent to us via Facebook:

“If you advertise in any of the English Newspapers and have not registered your business, Malaga Tax Office are looking for you.....they are targeting English people advertising businesses and then checking if they are registered and if not you WILL
be in serious trouble......I have just received a note from a friend who has just been stung..........”

All I have to say about this is :- “And about time too!” The law in Spain is quite different from other countries, including the UK. Whereas in the UK you need not register a business for VAT unless you reach a certain amount of turnover, here in Spain you must register for IVA at the outset and make quarterly declarations in respect of IVA collected and IVA paid each quarter. For this you must register at the Hacienda (tax office).


Advertisment

You must also register with Social Security and pay your monthly self employed contribution at the outset. There is no period of grace to test the water.

While not only it’s illegal to trade unregistered, what’s worse is that it also represents unfair competition for those businesses who do pay their dues and who cannot compete with fly by nights who pay nothing and work from home or their car. This is how legitimate businesses end up closing down with the tax office losing revenue on two counts.

It has taken the economic crisis to get the authorities to finally do what they should have done years ago. They are now targeting advertisers particularly in English publications’ classified columns as well as suspect small magazines that themselves may not be registered.



Start Blogging:
Other related businesses