Elimination of the Current Account
A key element of this reform is the elimination of the so-called VAT current account, currently used to manage payments, refunds, debts, and credits. The VAT current account will be replaced by a new VAT provision account, giving taxpayers greater flexibility in managing their VAT credits and liabilities.
New sanction mechanism: replacement VAT return
With the elimination of the VAT current account, the so-called special account for late filings or non-payment of VAT debts will also disappear. From 2025, failure to submit returns will result in an automatically issued substitute VAT return, whereby the administration will set an amount based on the highest payable balance from the past twelve months (with a minimum of €2,100).
Extended filing deadline for quarterly filers
The filing deadline for quarterly VAT returns will be extended by five days, making it due by the 25th of each month. For monthly filings, the current deadlines remain unchanged.
Revised refund procedure
The refund process will also be reformed. Refunds through the VAT return will now only apply to the current filing period, while credits from previous periods will need to be reclaimed through the aforementioned (VAT provision account) procedure. Monthly filers can request refunds of their VAT credits without a special refund license and will receive these within two months of the filing deadline.
Payment via direct debit
Taxpayers will soon be able to settle VAT debts via direct debit, simplifying and streamlining the payment process.
New VAT procedural rules
New rules will be introduced requiring taxpayers to respond within one month to written requests for information from the administration. Failure to respond promptly may result in the administration withholding the VAT credit as a precautionary measure.
Effective date
These new rules will take effect on January 1, 2025, as confirmed by the Royal Decree.