Benefits of deferred VAT for importers

Posted by Boss Continental

Like every year, the period between 1 and 30 November is the time for companies to request from the Spanish tax agency a change in the status of their VAT assessments from quarterly to monthly. This enables importers to defer VAT payments to imports, with all the benefits this entails.


Proposed Royal Decree XX/2014 amending the following: (inter alia)

– Tax regulation on import VAT.

This Regulation envisages the option of deferring payment of this tax on imports when the importer files a periodic return-assessment.

To do so, the importer must avail itself of the provisions of Article 71.3 of this Regulation: that is, itmust adjust its tax assessments to coincide with the calendar month.

Companies that now file quarterly returns need only apply for the change between 1 and 30 November to be able to defer VAT starting in January of the following year.

Companies that now file returns on a monthly basis need only notify the Spanish tax agency in January 2015.

We believe this is an important step forward for import companies in not having to make payments to front the tax in advance (21% of their purchases) and adapt it to the standard process of their commercial operations.

Boss Continental stands ready to answer any question you may have about this and to advise you on the required formalities.

Boss Continental