angiescarr

Does anyone have details of the proposed changes in legislation for Autonomos? Does it go far enough?

lynnxa

what new legislation? haven't heard anything...

lynnxa

OK found it - if passed, it sounds like it would cut the autónomo payment enormously

http://www.ata.es/noticia.php?id=484

me me

Good reducing the cost of SS payments.

But the main advantage is the changes in the IVA payments, paying when you receive the money and not on handing over the receipt, as a lot of PYMEs have to give 30 or more days to pay to their customers, and so the money has to be paid out for the tax before being collected.

This is probably a good move to prevent the cash in hand jobs from tradesmen too.

lynnxa

yes that too - although from my point of view it makes little difference since most of my work is IVA free - only my written translations attract IVA & I get paid 'on delivery' as it were - no payment, no delivery

JnK

Anyone any idea if and when this will come into effect?

Casa Santo Estevo

There is not much in Spain that is zero rated.
Only the following:
Education provided by the state or licensed bodies
Tutoring on subjects that are included in the curricula at all educational levels
Cultural services such as museums, libraries, seminars and conferences
Artists, writers, composers and translators of artistic and scientific work
Insurance
Postal services

I thought the law about IVA was changed for this financial year. The contrubutions will not change for another 2 years. However the law has been written so that the government can withdraw these measures at any time.
Have you talked your Gestoría?

lynnxa

about???

I speak to my gestor pretty regularly - I even have him as a FB friend

I'm sure he'd have told me by now if my invoicing was supposed to have changed

Casa Santo Estevo

I asked a question in general. You said you are somehow zero rated so and you only get paid when you are paid. So this new ruling dose not seem to of any great importance to you.
Ours is too busy to be on FB

lynnxa

ahh - but you quoted me so it was a reasonable assumption that you were addressing yor comments to me
I'm not 'somehow' zero-rated

I teach - maths, English & Spanish & general cross-curriculum support - all zero rated

my written translation work carries 21% IVA - but since I get paid immediately for that, any changes to lead-time for IVA withholding won't make a difference to me, you're correct

however - if my monthly autónomo payments drop by an eventual 75% - that will make a HUGE difference to me

angiescarr

Is this 'cuota' they mention actually Seguridad Social (because they don't use that name) or not? Or some other tax on business? But I certainly think dropping SS payments for startups or very small businesses would help create more. My husband really wants to have a go at setting up an internet based business but just daren't right now because he's afraid he'll make less than the SS payment initially. we're hardly getting by as it is! I think they should go further and treat IVA like the British do VAT and only have it 'kick in' at a certain level. In my case it's crazy that in one country small craft businesses copying work from my instructions can afford to sell exactly the same goods made by hand taking exactly the same time at 21% cheaper. That's even without the influence of China! I din't mind fair competition but that is ridiculous! But these new laws have answered a misunderstanding I had with my Gestor who would never issue me with a factura until I'd paid my bill. I never realised that they would have to pay the IVA while waiting for my payment.

me me

It would be a good idea to have a minimum turnover before becoming liable for IVA as you say, like in the UK.

I suppose for your business it is a double whammy, because as with all craft/handmade stuff the most expensive part of the items is the time it takes to make.

The IVA on your purchases of raw materials that can be offset against the IVa due on the sales, in quite a piddling amount.

If ever it does happen that a business with a small turnover has the advantage of not paying VAT, you will be laughing........well you know what I mean.....

Fingers crossed that someone in power thinks of it.

olivefarmer

So here is a theoretical example.

I buy some materials off my builders merchant. "Sorry, I will have to charge you IVA on the Vigas(concrete beams) so I will do you a separate invoice for those".

So you have a Cement factory churning out millions of bags of cement powder and not charging their customers IVA. In return those merchants don't charge the end user. Doesn't the taxman smell an IVA rat?

NadiaN

My understanding from reading the link is that they will only reduce the autonomo payment for people who are autonomo while also working another job. It says "Reducción de cuotas de la pluriactividad", and pluriactividad is defined here (http://www.seg-social.es/Internet_1/...1331/index.htm) as:
"Pluriactividad: Se entiende por pluriactividad la situación del trabajador por cuenta propia y/o ajena cuyas actividades den lugar a su alta obligatoria en dos o más Regímenes distintos del Sistema de la Seguridad Social. "

So they are reducing the autonomo payments for people who currently pay Seguridad Social payments twice - once through the company they work for, and once as autonomo. It is not going to affect those of us who are autonomo full-time.

Casa Santo Estevo

I personally like have the government pay me back the IVA I have forked out on. Especially now it comes on a regular basis rather than something like 18 month later.