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V0822-20 ·13 April 2020 ·consulta-vinculante Medium impact
Tax

Income and withholdings are recognised based on the taxpayer's chosen accrual or cash basis

A self-employed individual asks when invoices issued in 2018 but paid in 2019 should be declared, and when withholding tax should be applied. The DGT rules that recognition depends on whether the taxpayer uses the accrual or cash accounting method, and that withholding is applied at the time of payment.

In 5 key points

How it affects those involved

This clarification provides certainty for self-employed individuals regarding the timing of tax reporting and withholding obligations, depending on their chosen accounting method.

Lifecycle

2020-04-13PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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