Updated: 22/06/22
The REDEME is the Monthly VAT Refund System, which enables the self-employed and all companies, whether they are SMEs or not, to settle VAT on a monthly basisThis means that it does not have to be filed quarterly, using form 303.
In this way, VAT taxpayers pay the tax every month instead of every three months, which increases liquidity in the case of companies that have a credit balance on their returns.
Who can access REDEME?
Today, the majority of VAT reporters may use the EMIRD, irrespective of their activity or level of turnover.
This system used to apply only to large companies (with a turnover of more than EUR 6 million) and exporting companies, but now all taxable persons liable for VAT can benefit from it.
The REDEME is aimed at avoid financial costs arising from delays in the collection of VAT refunds. It is suitable for entrepreneurs and the self-employed who need to purchase goods or services for use in professional activities and/or for those starting a new project.
How to register for the monthly VAT refund scheme
For register in the REDEMEIn order to be able to do so, a number of conditions must be fulfilled:
- The application for registration is made through the forms 036 or 039.
- Are not engaged in activities that are taxed under the simplified regime.
- Be in good standing with the tax authorities, with no outstanding payments to the tax authorities.
- Not to be in a situation of precautionary leave from the REDEME.
- Not to have been excluded from REDEME in the last three years.
If you have managed to deregister from the REDEME, you are not eligible for the re-registration for up to one year.
When can I apply for the REDEME?
Applications for registration in the REDEME take place in November and have one year to enter into force. This means that if it is applied for this month, i.e. in November 2021, it will not enter into force until November 2022. The mode of registration is telematic.
Permanence of the REDEME and grounds for withdrawal or exclusion
It should be borne in mind that if you opt for this monthly VAT refund scheme, you are required to remain in this regime for at least one year.
The cancellation of the REDEME can be requested at the month of November of the previous year to which the deregistration becomes effective. It is not possible to reapply during the calendar year in which the deregistration is requested. This means that if the 2018 deregistration is submitted in November 2017, it cannot be reapplied for in November 2018 for the new registration to take effect in 2019.
You can be excluded from the scheme if you do not meet the requirements to benefit from the monthly VAT refund system, or if the census data you provided to the administration for registration turn out to be inaccurate or false.
Please note that this exclusion implies that no applications will be accepted under the EMIRD for a period of three years from the date of notification of the exclusion.
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