Merchants must be retailers to apply the equivalence surcharge

The equivalence surcharge regime constitutes a VAT settlement model designed to simplify management for certain taxpayers. However, its application is not automatic for any commercial activity, but is strictly conditioned on the profile of the taxable person and the type of customers to whom they direct their activity.

What the DGT has ruled

The Directorate General of Taxes (DGT) has specified that this special regime can only be used by individuals or entities under the income attribution regime who hold the status of a retail merchant. For this condition to be met, regulations require that deliveries of goods made to subjects who are not entrepreneurs exceed 80% of the total operations carried out by the taxpayer.

In cases where this threshold of sales to final consumers is not met, or when the activity does not fit within the exceptions provided by the objective estimation method, the taxpayer may not opt for this model. Instead, all deliveries of untransformed movable goods must be taxed under the general VAT regime.

What it means for you

If you are an individual carrying out a commercial activity, meeting the 80% requirement is decisive for your settlement model. It is not enough to have the intention of selling to the final consumer; the reality of your operations must constantly reflect that retail status.

If your activity evolves and you begin to make significant sales to other entrepreneurs or professionals, you could lose the possibility of remaining under the equivalence surcharge. This would imply a change in the way the tax is settled, moving to the general regime, which alters the deduction mechanics and the treatment of invoices.

What should be done

It is necessary to perform rigorous monitoring of the percentage of sales made to non-entrepreneurs. Maintaining detailed control over the typology of customers will allow you to anticipate whether the status of retail merchant required by Law 37/1992 and the VAT Regulation is being maintained. In the event of any change in the volume of sales to professionals or companies, the fiscal impact of the transition to the general regime must be assessed.