VAT Deferral on imports

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The VAT Deferral Regime on imports is aimed at companies that import goods from non-EU countries. If this applies to you, please note that it is possible to sign up to the voluntary VAT deferral arrangement for imports and thus avoid paying 21% VAT once the Spanish Tax Authorities admit your application to this regime.

If, for example, your company buys goods in Asia, 21% VAT is due upon importation into Spain. This VAT is then recovered via form 303 which is filed with the Spanish Tax Authorities and can be slow to process…however with the VAT Deferral on imported goods Regime you can skip having to pay 21% up front, thus giving your company more liquidity and avoiding the economic impact of making such payment on arrival.

In order to join the VAT Deferral on imports your company must be importing non-EU goods, registering VAT on a monthly basis and simultaneously offsetting the credit against the monthly return.

Why it is important to join the VAT Deferral Regime on imports

The advantage of joining this regime is that you will no longer need to pay VAT upfront and, furthermore, you will not need to claim this money back through an ordinary administrative process that can take between 12 and 16 months to complete, which can severely impact your liquidity if you import regularly from non-EU countries.

The added value of relying on Leialta is that our team includes specialists in these types of transactions. We work with many clients who have joined the VAT deferral on imports regime, giving us in-depth knowledge of the conditions and steps required.

Main advantages of deferring VAT on imports

Head of Business Restructuring

En Leialta tenemos un responsable en el área de Asesoría empresarial

Paul Urrutia

Founding Partner

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  • As a business owner, you will not need to make advance payments of this tax.
  • Once you join the regime you can declare this VAT and thus facilitate deductions on regular tax payments due.
  • Your business activities are aided by joining this regime (whether your business is well established or in initial stages of development) when you have a large number of imports, because not paying VAT at Customs can lead to substantial financial savings.
  • This can be beneficial for developing, improving or maintaining your company in moments of crisis or financing problems.

Our tax department can also support your business in Tax Compliance or tax management, by offering a comprehensive service providing the best tax solutions for your company.

What steps should you take to join the VAT Deferral Regime on imports?

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In order to benefit from the VAT Deferral Regime you need to do the following:

1. Register to join the monthly Value Added Tax refund system in October.

2. Request to join the VAT Deferral Regime on imports in November.

3. Be accepted on the VAT Deferral Regime on imports as from the 1st of January of the following year (therefore, in order to apply for VAT deferral in 2022, you must file form 036 in November 2021).

4. If you cease to declare VAT on a monthly basis, you will be automatically excluded from the VAT deferral on imports regime from the moment you stop registering and paying monthly VAT.

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