Glossary entry (derived from question below)
Spanish term or phrase:
Grupos societarios (a efectos de IVA)
English translation:
VAT groups
Added to glossary by
Mariana Serio
Nov 2, 2015 19:11
8 yrs ago
4 viewers *
Spanish term
Grupos societarios (a efectos de IVA)
Spanish to English
Bus/Financial
Finance (general)
Tax regulations/ new VAT system
SPAIN. From a text about new VAT regulations. As a freelancer I struggle every quarter to stump up my tithe, and I'm also struggling with this term. It sounds like it means that companies group together to achieve some kind of advantage in terms of VAT payments, but how they do it (and indeed, the appropriate English term for it) is a mystery to me.
"La Agencia Tributaria exigirá información en tiempo real con el objetivo de facilitar el pago y el cobro del IVA, para ello lanzará el nuevo sistema de gestión de IVA llamado ‘Suministro Inmediato de Información’ (S.I.I.) que entrará en vigor el 1 de enero de 2017. La Agencia cree que habrá tiempo “suficiente” para introducir los cambios normativos necesarios, adaptar los sistemas informáticos y facilitar la adecuación de los contribuyentes. Sólo será obligatorio para las grandes empresas (las que facturan por encima de los seis millones), los ****grupos societarios**** a efectos de IVA, y las compañías inscritas en el régimen de devolución mensual del impuesto, las cuales tendrán la obligación de remitir el detalle de registro de las facturas que deben hacerse constar en los ‘libros registro’. "
"La Agencia Tributaria exigirá información en tiempo real con el objetivo de facilitar el pago y el cobro del IVA, para ello lanzará el nuevo sistema de gestión de IVA llamado ‘Suministro Inmediato de Información’ (S.I.I.) que entrará en vigor el 1 de enero de 2017. La Agencia cree que habrá tiempo “suficiente” para introducir los cambios normativos necesarios, adaptar los sistemas informáticos y facilitar la adecuación de los contribuyentes. Sólo será obligatorio para las grandes empresas (las que facturan por encima de los seis millones), los ****grupos societarios**** a efectos de IVA, y las compañías inscritas en el régimen de devolución mensual del impuesto, las cuales tendrán la obligación de remitir el detalle de registro de las facturas que deben hacerse constar en los ‘libros registro’. "
Proposed translations
(English)
| 4 +2 | VAT group |
Mariana Serio
|
References
| Information |
Helena Chavarria
|
Change log
Nov 5, 2015 12:47: Mariana Serio Created KOG entry
Proposed translations
+2
14 mins
Selected
VAT group
"A number of conditions must be met before two or more corporate bodies can form a VAT group. If an entity wishes to join a VAT group but is regarded as a ‘specified body’ two further conditions must be met. There are many advantages to VAT grouping, particularly given the new penalty regime; however there are also a number of disadvantages so careful consideration must be given before deciding to join or form a VAT group. Whether holding company activities can be regarded as economic activity, with corresponding input VAT recovery, is a hot topic in view of BAA Ltd."
Note from asker:
| Great explanation, thanks. I was wondering about the "holding company activities" issue myself. |
4 KudoZ points awarded for this answer.
Comment: "Thanks to everyone for the help and comments :-)"
Reference comments
18 mins
Helena Chavarria
Spain
Spain
Native in English
Works in field
Spain
Striving for excellence
Native in: English (Variant: British) 
Works in: Spanish to English, Catalan to English
Related KudoZ points
:
151
Reference:
Information
1.2.1 What is VAT group registration?
VAT grouping is a facilitation measure by which 2 or more bodies corporate can be treated as a single taxable person for VAT purposes. ‘Bodies corporate’ includes companies of all types (see section 9) and limited liability partnerships.
1.4 Can VAT groups and divisional registrations be combined?
No. You cannot combine the 2. A corporate body, which is registered for VAT in the names of its divisions, cannot have one of its divisions included in a VAT group. Similarly, a corporate body that is a member of a VAT group will not be allowed to register one of its divisions separately outside the group.
If a company which is a member of a VAT group wishes to register some of its divisions separately, it must first apply to leave the VAT group before it can apply for registration in the names of its divisions.
Conversely, a corporate body, which is registered in the names of its divisions and wishes to form a VAT group with other associated companies or to join an existing VAT group, must first apply to cancel the registration of all of its divisions.
https://www.gov.uk/government/publications/vat-notice-7002-g...
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Note added at 19 mins (2015-11-02 19:30:26 GMT)
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SPEED READ
A number of conditions must be met before two or more corporate bodies can form a VAT group. If an entity wishes to join a VAT group but is regarded as a ‘specified body’ two further conditions must be met. There are many advantages to VAT grouping, particularly given the new penalty regime; however there are also a number of disadvantages so careful consideration must be given before deciding to join or form a VAT group. Whether holding company activities can be regarded as economic activity, with corresponding input VAT recovery, is a hot topic in view of BAA Ltd.
http://www.taxjournal.com/tj/articles/vat-and-groups-compani...
VAT grouping is a facilitation measure by which 2 or more bodies corporate can be treated as a single taxable person for VAT purposes. ‘Bodies corporate’ includes companies of all types (see section 9) and limited liability partnerships.
1.4 Can VAT groups and divisional registrations be combined?
No. You cannot combine the 2. A corporate body, which is registered for VAT in the names of its divisions, cannot have one of its divisions included in a VAT group. Similarly, a corporate body that is a member of a VAT group will not be allowed to register one of its divisions separately outside the group.
If a company which is a member of a VAT group wishes to register some of its divisions separately, it must first apply to leave the VAT group before it can apply for registration in the names of its divisions.
Conversely, a corporate body, which is registered in the names of its divisions and wishes to form a VAT group with other associated companies or to join an existing VAT group, must first apply to cancel the registration of all of its divisions.
https://www.gov.uk/government/publications/vat-notice-7002-g...
--------------------------------------------------
Note added at 19 mins (2015-11-02 19:30:26 GMT)
--------------------------------------------------
SPEED READ
A number of conditions must be met before two or more corporate bodies can form a VAT group. If an entity wishes to join a VAT group but is regarded as a ‘specified body’ two further conditions must be met. There are many advantages to VAT grouping, particularly given the new penalty regime; however there are also a number of disadvantages so careful consideration must be given before deciding to join or form a VAT group. Whether holding company activities can be regarded as economic activity, with corresponding input VAT recovery, is a hot topic in view of BAA Ltd.
http://www.taxjournal.com/tj/articles/vat-and-groups-compani...
Note from asker:
| Almost too much information there, thanks again :) |
Discussion
The IVA point is that groups can consolidate their IVA for all the companies in the group.
Whenever I see the letters IVA I reach for my revolver. Well, I feel like it. Actually I feel like having a little lie down.
So groups of companies for IVA (VAT) purposes.