If you are interested, you should apply for this scheme during the month of December.
Groups of companies formed by a parent company and other companies in which it holds more than 50% of the capital (directly or indirectly) may opt for the VAT group of entities regime in one of the following ways:
- Basic. Each month the companies file their returns without paying anything, and it is the holding company that files the aggregate return, offsetting the individual results against each other and settling the resulting net amount. In this way, any negative balances that some companies may have are offset without the need to wait for a refund.
- Advanced. This is especially advisable in cases where one of the companies in the group cannot deduct all the VAT it bears. In this modality, the monthly settlement is also determined by aggregating balances, but when one group company invoices another for the part of the price equivalent to the profit margin and those costs on which it does not bear VAT (financial expenses, salaries, etc.), it should not charge VAT. Thus, if the buyer cannot deduct all the VAT, it has a lower cost in its purchases of intra-group goods and services.
The option for this regime must be agreed by the management bodies of the companies that wish to opt for it (i.e. there may be subsidiaries that continue to be taxed individually) and must be communicated to the Treasury (form 039) in the month of December of the year prior to the year in which it is to take effect.
Our professionals will study whether in your case it is advisable to use the VAT group system.
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