How to report the Kit Digital subsidy you received
The Kit Digital subsidy is treated as a subvención corriente (current subsidy), i.e. one that is used within less than one year.
This follows from the description of the subsidy itself: any services you receive under this subsidy are contracted for up to 12 months.
For example:
- A website is a service that includes its development and keeping it running (hosting, domain, support, etc.) for 12 months.
- The service puesto de trabajo seguro is a rental of a laptop for 12 months with an option to buy it at a price not exceeding 15% of its value. After that period you can either buy the equipment or return it to the provider.
Providers usually offer to sell you the laptop for a symbolic €1.
In theory, a website could be treated as a subvención de capital, because the website is transferred to the client and becomes an asset that can be used over a long period. However, the site is only part of the overall service.
How to report Kit Digital in IRPF (modelo 130)
Since both items are services, and services are not depreciated, you can deduct the full amount as an expense immediately.
From the moment you exercise the purchase option for the computer, it becomes a fixed asset and is subject to depreciation. However, its acquisition cost is less than €300, so you can deduct the €1 purchase price in full immediately.
- The amount of the subsidy actually used is recorded as income on the transaction date of the invoice where it is applied. box [01]
- The full amount of the invoice excluding VAT for the services is recorded as an expense. box [02]
How to report Kit Digital in IVA (modelo 303)
If the service provider is in the Canary Islands (without IVA)
These transactions are subject to IGIC (Impuesto General Indirecto Canario), which does not apply in the rest of Spain (operación afectada por un supuesto de inversión del sujeto pasivo).
In this case, the amounts are entered in boxes [12] and [13] as IVA devengado and then offset in boxes [28] and [29] as IVA deducible.
Below is an example of how to report the service puesto de trabajo seguro (laptop with a price of 1000).
If the service provider is in mainland Spain (Peninsula, IVA 21%)
The entire VAT amount is refundable/deductible in the tax period (year) in which the expense arises (transaction date of the invoice).
It is recorded as deductible VAT in boxes [28] and [29] as IVA deducible.
How to keep your books for the Kit Digital subsidy
Download a sample file: Libros de registro Kit Digital
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