Friday, 3 October 2014

Minister admits failure of new VAT system

(www.periodistadigital.com)
MADRID – The Minister for the Treasury, Cristóbal Montoro, admitted in Congress this week to the failure of what had been one of the PP’s star planks in its electoral programme and had predicted the new caja system would allow 2.3 million small businesses and individuals to pay their VAT tax when they have been paid themselves. Only 22,090 have subscribed to it. At present VAT is collected when a bill is issued, or via a monthly or tri-monthly estimate procedure. Montoro promised to reform the law to make the new system more attractive, but now admits the expected flood of businesses applying for the change – he had predicted that 2.3 million small businesses (pymes, from pequeña y mediana empresa) and/or self-employed (autónomos) -- simply haven't subscribed to the idea. (Source: El País online)

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