Following the presentation at the last IVA Conference “Spain-Update”, the conditions under which the payment of import VAT in Spain can be deferred have been finally published …
Following the presentation at the last IVA Conference “Spain-Update”, the conditions under which the payment of import VAT in Spain can be deferred have been finally published.
The current situation obliges importers to pay import VAT at the moment of importation (otherwise, goods cannot be removed from customs). The deduction of the VAT amounts can only be done on the VAT return to be filed in the next VAT liquidation period. Therefore, the existing creates a significant financial impact.
As of January 1st 2015, it will be possible to pay and deduct the VAT related to imports directly on the periodical VAT return. Therefore, there will be no direct payment at the moment of importation.
As expected, this deferment scheme will not apply to all taxable persons. It will not be restricted to a certain industry but to those taxable persons filing Spanish VAT returns on a monthly basis (the normal VAT liquidation period in Spain is quarterly).
Therefore, companies that can benefit from the deferment of the payment of the import VAT are the following:
- Those considered, for VAT purposes, as “large companies”. These are companies with a turnover higher than EUR 6.000.000.
- Those companies belonging to a VAT Group.
- Those companies eligible to apply for a refund of VAT on a monthly basis.
According to the above, non-established entities just importing goods into Spain (i.e. those non-established entities not filing periodical VAT returns in Spain) are, in principle, not allowed to apply this deferment scheme. These companies will have to do a direct payment of the import VAT and apply for its refund at a later stage.
Fernando Matesanz
Spanish VAT Services Asesores
Please note that France, as well as Poland will introduce similar ‘reverse charge’ régimes next year.
