Changes to IGIC payments

[fifi]

Changes to IGIC payments

Javier González Ortiz, the Minister of Economy, Finance and Security of the Canarian Government has confirmed that both the self-employed and small and medium sized businesses (SMEs) will not have to pay IGIC (like VAT) to the tax man until their invoices have actually been paid.

Until now the tax was payable in the quarter in which a business person raised their invoice, regardless of whether it had been paid or not.

In the case of IVA (VAT), applicable to mainland Spain, the matter has already been included in the Draft Law on Entrepreneurs.

Ortiz has said that the IGIC measure will come into force in the Canary Islands at the same time as the new state regulation which will be next year, during 2014.

On the face of it it's a positive move for the self employed and SMEs, however the minister warned taht "it will have an initial impact on public funds and that this needs to be addressed as  it could affect all important deficit calculations", this fact has not been taken into account by the State Government.

González Ortiz, also announced a scheme in collaboration with various financial institutions to make available around 300 million euros in loans to entrepreneurs and small and medium enterprises in the Islands.

Ortiz said access to credit is the main difficulty in initiating new projects, "so that this government is focusing its efforts on overcoming this handicap."

Canarian weekly article.

[SheilaW]

Good news for autonomos; thanks fifi.