Registration monthly VAT return (REDEME). 

Next February 1, 2016 will be the last day for filing the tax return model 303 (VAT) with the data of the last and fourth quarters of 2015 or December if the tax return is monthly (large companies).

 Can I offset register?

According to Article 115. One of the Tax Law on Value Added will be the time when businesses and entrepreneurs can apply for a refund of input VAT where the amount is greater than the VAT issued. That is, when you have paid more VAT generated. 

However, there may be entrepreneurs who have to wait for the return can cause liquidity problems or financial expenses. Recall that the administration does not have a ceiling to return the VAT; the only term to consider is that if it takes more than 6 months to return VAT shall bear interest until the date of payment. 

Some companies net profit is practically almost coincident with the input and pending VAT return. 

In such cases, the question is the inscription on the VAT MONTHLY RETURN (REDEME) REGISTRATION. From the reverse the inscription will become MONTHLY, and also will refund application to become monthly. 

Registration must be made through the box filling 036 129 (p. 1. Application for registration / deregistration of monthly return) and section 579 on page 5. 

The art. 30 of the Regulations of Value Added Tax (RIVA) regulates this scheme returns at the end of each settlement period. 

As a summary of the requirements to be registered in the REDEME they are: 

1. Present the model 036.

2. To meet the current tax obligations.

3. Low precautionary found in the REDEME.

4. No tax in VAT Simplified Regime.

DEADLINE TO APPLY: Art. RIVA 30.4 states that applications must be submitted in November last to enter into force registration year. That is, it occurs in November and would take effect on January 1 next year.

The second paragraph of that article provides that in the case had not been presented in November, also may apply for registration during the period of submission of periodic settlement declarations. This means that if we sign up we present the model 036 between the 1st and 20th of the month in which we must present the corresponding settlement of VAT.

This period must also be met in the event that the employer had started the activity once started the year. So, if for example, a taxpayer starts the activity on July 1, the application for registration in the REDEME shall be submitted between 1 and 20 October, the date on which must be presented the first self-liquidation.

After presenting the model 036, in many cases, the tax authorities conduct an on-site business checking and request supporting documentation of the activity, list of invoices issued and supported, etc. Thus it attempts to prevent fraud through fictitious companies.

It may be that, after filing the application, the deadline for reaching the next autoliquidación without the Administration had resolved yet. In such cases, the recommendation is to present the models 303 and 340 run.

The deadline for ruling on the application for registration is three months, whichever the negative silence, that is, if not receive a notification, you can understand you dismissed the application (art. 30.5 RIVA) in order to appeal the dismissal.

Bonds: Once registered, the company is obliged to present the model 303 monthly (between day 1 and day 20 after the accrual month), and the model 340 for a list of all invoices issued communicates and supported, for at least one year.

Summary: If you make exports or intra-Community transactions in your activity, that is, your customers are other foreign companies so no repercutes any VAT and VAT can only stand to compensate you qualify for this system although it has a more bureaucratic and administrative expenditure.