What is simplified regimen?
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What Does simplified regimen Mean
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.
The tax regimes often see two classifications: one common system and simplified system . Each taxpayer falls into one or another group according to certain requirements established by the authorities.
The simplified regime is one 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.
Usually in a simplified scheme are paid aliquots reduced and exempts taxpayers from certain obligations (such as filing a monthly affidavit, to name a possibility).
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 pension components (social work and retirement).
In this way, independent workers and merchants who do not reach a certain level of turnover and who meet other requirements, can register in the simplified regime and invoice as monotaxistas. Different categories are considered in this scheme : when a person exceeds the maximum billing set for the highest category, they are automatically left out of the simplified scheme.
The simplified regime, as well as the common one, entails a series of well-defined obligations, which are the following:
* Make the relevant registration in the Single Tax Registry (RUT) . This first point is also found among the obligations of the common system;
* the first time a sale is made to a person who belongs to the common system, a copy of the RUT must be delivered;
* 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 it has complied with the first of the obligations mentioned here;
* compliance with any control system determined by the Government;
* Record all the operations that are carried out each 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 that are 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. In the same way, it is mandatory to express the total income that has been obtained throughout the month.
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 the obligations related to the common system must be fulfilled;
* submit the VAT return, since for this regime it has no legal effect;
* require deductible taxes and determine VAT to be charged;
* carry out the calculation of VAT in the acquisition of goods that are excluded or exempt from this tax ;
* expedir factura. Por otro lado, si la persona perteneciente al régimen simplificado decide hacerlo para sus ventas, tiene la obligación de cumplir algunos requisitos, como ser denominar el documento como factura de venta de forma expresa, incluir ciertos datos específicos del vendedor y del comprador, dejar constancia de la fecha de expedición, del total y la descripción de la operación.