Recargo Equivalencia

Another country-specific feature Spain further expands the international reach of your Mago4 ERP.

Edited by Marketing Department

The ability to develop solutions to better manage taxation and a complete and continuous assistance on the whole management product are just some of the many keys to success of Mago4 in Spain.

In Spain there is a system of taxation called 'Recargo de Equivalencia' (R.E.), which only concerns certain retail activities. This is a special scheme which is compulsory for resellers who do not process products at all, i.e. resellers to the final consumer. The Recargo de Equivalencia does not apply to industrial activities, services or wholesale trade.

However, there are exceptions within the retail sector where certain activities are not eligible for RE; these include jewellers, car dealers, boat and airplane sales, service stations and others. These categories are subject to a different regime, whereby the retailer has to pay, in addition to VAT, an additional amount (which is then the Recargo de Equivalencia); the payment is made directly to the supplier. This way, you are exempt from submitting the VAT payment itself. In practice, the supplier must include the RE on the invoice, differentiating it from the VAT, and consider both amounts as VAT charged in the relevant tax statement.

Thanks to its innate flexibility, Mago4 adapts to this typically Spanish system. Let's take the case of a customer covered by the special R.E. regime. With the Spanish location of the ERP Mago, in fact, in all sales documents starting from the Offers, in addition to the VAT in the detail line is calculated the Recargo of Equivalencia, and a rate for the R.E. is also indicated in the VAT code. The additional VAT, calculated by Mago4, is shown in the tax printouts of the VAT sales register and its summary by VAT code, general summary of VAT registers and VAT clearance.

Maximum adaptability to all situations, efficiency based on local peculiarities: this is how Mago4 is able to support any phase of business management, anywhere in the world. This is one of the reasons why Mago4 is the international ERP software by vocation, chosen in over 30 countries around the world and part of Zucchetti's international strategic offer.