How to declare a public contract in VAT?

Ok, here is the version with a little more life and less manual roll:

Look, if you have a company and it's your public contract, get ready: you'll touch you fight with VAT yes or yes. It's not optional, go. The issue is simple but at the same time it has its trick: you have to declare that contract well, because as a hacienda caught you in a resignation, I put a fine pure.

First, what noses is a public contract? Basically, a pact between a private company (that is, you or yours) and some public agency, city council, ministry, whatever. They pay you, you give them a work or sell them something. And yes, that money carries VAT, because nothing gets rid of VAT in this world.

And how do you declare it? Well, presenting the happy VAT statement, which can be every three months or every month, depends on the fiscal mess in which you are involved. All this is done by the Tax Agency, of course, because if not, who will want your money more than them?

In the statement, you have to put the total paste that you have been paid for the contract, VAT included. All to the taxable base, without cutting you. To that base you put the type of VAT that touches (the general, reduced, whatever it is according to what you sell or do) and you already have your accrued VAT, which sounds like word but only means "the VAT that you have to pay."

Do not flipe thinking that this is free: everything you invoke, be it for public contracts or other stories you have, goes in the same statement. It doesn't matter if you are exempt from VAT or not, you put everything there and what the Treasury decides.

And be careful, if you pay things to fulfill the contract (materials, subcontracts ...), the VAT you pay there you can break it up. Of course, keep the invoices as if they were gold, because if you do not have them, then to see how you show anything when an inspection comes to you.

Of course, each country has its own legal mess. There are sites where some public contracts are exempt from VAT or carry a lower guy, so you do not trust and ask an advisor who knows this, because if you think you are smarter than the law, you just end up crying.

In short: you have to declare the amount of the contract at the VAT base, put the type that touches, and subtract the VAT you have paid in expenses for that contract. Do it well, because if not, the fines are not a joke.