Your Specific Choices for the Tax Submissions

The decision to switch to simplified accounting must be made in connection with the filing of the first annual VAT return in a given year. The use of regular accounting will be implemented automatically if the request is not made within this time period.

Smaller businesses, such as sole proprietorships, partnerships, and non-commercial organizations, are permitted to use simplified accounting procedures as long as they conform to particular turnover thresholds and requirements with ภงด 50 ภงด 51.

Simpler accounting has certain limitations

It is assumed that the business income holder does not exceed, throughout the course of the year, the revenue thresholds of the following categories of revenue:

400 thousand euros were spent on the supply of services, and 700 thousand euros were spent on the disposition of assets.

The preceding tax period must be taken into consideration in order to determine whether or not one is subject to this regime: if these limitations are exceeded in the subsequent tax period, one will be subject to regular accounting.

Only a limited number of subjects have the option of opting for the streamlined accounting system, however. Apart from being restricted by turnover restrictions, the following topics will not be permitted to use simplified accounting and will be required to use conventional accounting instead:

Public and private entities whose sole or main purpose is the exercise of commercial activities; permanent establishments of companies and non-resident entities; unrecognized associations and consortia whose sole or main purpose is the exercise of commercial activities; cooperative and mutual insurance companies

What exactly does “simplified cash accounting” imply?

There are many advantages to using a simpler accounting system, including:

In addition, the cash principle is used to assess income rather than the accrual principle; corporations are excused from the need to maintain certain accounting records; and greater simplicity in tax administration is ensured.


However, what exactly is the monetary principle? When it comes to practice, simplified accounting means that a corporation only records the money that it has actually received and paid. As a result, only real cash movements are recorded, avoiding the payment of taxes on bills that have not yet been collected, such as, for example, invoices with payments due 30 days, 60 days, or 90 days from the invoice date at the end of the month