A simplified regime is aimed at small taxpayers.
The system or mechanism that allows the establishment and regulation of the operation of something is known as a regime . A tax regime , in this sense, refers to the legislation that establishes the payment of taxes in a certain territory.
Tax regimes usually contemplate two classifications: a common regime and a simplified regime . Each taxpayer falls into one or another group according to certain requirements established by the authorities.
What is a simplified regime
The simplified regime is that intended for small taxpayers . It has certain characteristics that make the regularization of the tax situation easier for these taxpayers than for the rest. Those who do not meet the criteria set by the State to belong to the simplified regime are part of the common regime.
Generally, in a simplified regime, reduced rates are paid and taxpayers are exempt from certain obligations (such as the presentation of a monthly sworn declaration, to name one possibility).
Typically, the simplified regime exempts taxpayers from certain obligations.
The example of the monotax
An example of a simplified regime is the monotax that exists in Argentina . Through this regime, certain taxpayers can pay a single fixed tax per month, which already includes the tax and the pension components (social work and retirement).
In this way, independent workers and merchants who do not reach a certain level of billing and who meet other requirements can register in the simplified regime and bill as monotributistas. This regime covers different categories : when a person exceeds the maximum billing set for the highest category, they are automatically excluded from the simplified regime.
Obligations linked to the simplified regime
The simplified regime, as well as the common one, entails a series of well-defined obligations, which are the following:
* Carry out the relevant registration in the Single Tax Registry (RUT) . We also find this first point among the obligations of the common regime;
* the first time a sale is made to a person who belongs to the common regime, a copy of the RUT must be provided;
* keep the RUT visible within the establishment in which the commercial activity is carried out, so that it is not necessary to request it to verify that you have complied with the first of the obligations mentioned here;
* compliance with any control system determined by the Government;
* record all operations carried out every day in a fiscal book.
Regarding the last point, it should be noted that the fiscal book is very important and must be kept as neatly and responsibly as possible, recording in chronological order all the operations carried out daily. At the end of each month, the total payments for purchases of goods and provision of services must be calculated, according to the invoices that the person has received. Likewise, it is mandatory to express the total income that has been obtained throughout the month.
The prohibitions
No less important than the obligations are the following prohibitions that shape the simplified regime:
* the value of VAT cannot be added to the price of the products or services offered, since in that case all obligations related to the common regime would have to be met;
* submit the VAT declaration, since for this regime it has no legal effect;
* demand deductible taxes and determine VAT payable;
* calculate VAT on the acquisition of goods that are excluded or exempt from this tax ;
* issue invoice. On the other hand, if the person belonging to the simplified regime decides to do so for their sales, they have the obligation to comply with some requirements, such as expressly calling the document a sales invoice, including certain specific information about the seller and the buyer, recording of the date of issue, the total and the description of the operation .