The compensation will become effective on 31 March and will benefit 8,125 local councils and 60 provincial councils and similar entities, all the Local Entities that participated in State Taxes in 2017. These administrations will receive 496.6 million euros.

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The Official State Gazette (BOE) has published an Order of the Minister of Finance and Public Function, María Jesús Montero, which determines the amount that Local Entities will receive as compensation for the monthly VAT that they stopped receiving in 2017, as a result of the implementation of the Immediate Supply of Information (SII).

The Order establishes the form of payment and the corresponding amount and complies with the provisions of the 2022 General State Budget, where a specific budget item is allocated for this circumstance, intended for both Autonomous Communities and Local Entities.

In the case of the Order for Local Entities, the amount of the compensation is established, as well as that of the legal interest, so that the total amount that the affected Local Administrations will receive, including interest, is 496.6 million euros.

The compensation will become effective on 31 March and will benefit 8,125 local councils and 60 provincial councils and similar entities, all the Local Entities that participated in State taxes in 2017.

The amount corresponding to each of the entities has been published in the Virtual Office for Financial Coordination with Local Entities, on the website of the Ministry of Finance and Public Administration.

The published regulations indicate that, once the transfers have been made to the Local Entities, if they do not reimburse the amount paid within two months, the compensation will be considered accepted.

The Order also stipulates that local councils that have initiated a legal claim will have until 28 February to issue a certificate that includes a resolution of the municipal plenary session to withdraw the open procedure and send it to the Ministry of Finance and Public Administration.

On the other hand, the Ministry of Finance and Public Function plans to approve shortly the Order of compensation for this concept to the Autonomous Communities, which will receive the amounts in the first quarter of this year, as already advanced by María Jesús Montero.