The VAT is an indirect consumption tax (sales, services...)
On one hand, if your company is VAT exempt, this means that you are not required to declare VAT every three-month period; this tax would represent a cost to your project.
On the other hand, if your company is not VAT exempt, that is to say, you do have to declare the VAT every three-month period, it would not represent a cost to your project. This is because the VAT you get from your activity offsets the input VAT. (You can clear this cost with the VAT you get from your activity) (income from all performances, artistic or cultural provisions...)
Income tax is an indirect and personal tax applied over the amount of money a person earns during one calendar year. If you have an organization that gets invoices from professionals or you have permanent employees, you are required to deduct the personal income tax (of invoices: 17% or 7%. In the case of wages; the percentage depends on each person’s earnings and under which legal regimen works.
The deduction that your company has applied has to be paid to the Tax Authorities at the end of every three-month period. At the end of the year all professionals or employees will have to do their own income tax return. At that time, they will be given the corresponding income tax back or required to pay income tax, according to their annual salary and personal situation.
A receipt is a proof of expenditure. Accounting a ticket in order to deduce IVA is not useful. It will also be ineffective as proof of expenses when you need to justify a subsidy (it will work just for specific situations and for insignificant amounts).
Tickets are useful if you account them as an expense and therefore they reduce the company’s countable profit.
From an economic point of view, the implications of hiring an employee will be:
* Pay the employee his or her net salary every end of the month.
* Pay Social Security each month after having paid the wage.
* Pay the employee his or her deducted personal income tax (IRPF), at the end of each three-month period.
Accordingly, the hiring costs (*) are the employee’s month gross plus the employee’s Social Security costs.
The main public bodies and institutions that give support to cultural projects in Catalonia are:
* Generalitat de Catalunya: ICIC, CONCA y Direcció General de Cooperació Cultural
* Barcelona City Hall
* Cultural Ministry
* Ramon Llull Institute
* Diputació de Barcelona: ODA (governing body of the province, Barcelona)
The artist regime refers to a set of laws that regulate artist hiring within the Social Security scope. When a company wants to hire an artist in order for him to work in a public performance, it has to be done under the artistic regime whatever the company’s legal structure is.
Basically, this regime takes into consideration the fact that artists do not work in a continuous way. Consequently, when you are applying for unemployment benefits, the days you have considered under this artist regime will account more than the working days considered under the general regime. However, the Social Security cost is the same in both situations. It just changes when the salary received by the employee changes.
An invoice is an administrative document that reflects goods and services sale and purchase agreements. The following information is required for an invoice to be accepted:
* Name, address and the tax identification number of the issuer.
* Name, address and the tax identification number of the person receiving the invoice.
* Invoice date.
* Invoice number.
* Invoice concept: information about the sale or service.
* VAT amounts breakdown (Taxable income + VAT = total amount)
* If the invoice is issued by a self-employed person with a professional epigraph, you must subtract the personal income tax (taxable income + VAT – personal income tax=total amount).
The Tax Authorities require everyone having an economic activity to report on all expense and revenue operations with customers and providers that are worth more than 3005,06€. The “legend” says that if one customer’s billing does not exceed this sum, your company details will not appear on any database, therefore your activity will not be registered in detail.