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V2632-17 16 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · cese de actividad

Obligation to file census deregistration if activity ceases or continue filing returns if activity continues

A local council has enquired whether it must continue filing nil VAT returns or if it should deregister from the census. The DGT clarifies that the obligation depends on whether there has been a definitive cessation of activity or if taxable transactions have simply not occurred during a specific period.

The question raised

Question raised: Obligation to continue filing these returns or deregistration from the census due to the cessation of activities subject to Value Added Tax and the formal obligations derived therefrom.

The DGT's ruling

If the definitive cessation of business activity occurs, the declaration of deregistration from the Census of Entrepreneurs, Professionals, and Withholders must be submitted within one month. If there is no cessation of activity but no operations subject to the tax are carried out during a period, zero-amount tax returns must continue to be filed. The obligation to file returns persists as long as the status of taxable person is maintained.

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