Publication of the Spanish Tax Authorities. Elimination of compulsory warranty in the process to defer the import VAT
On April 7th, the Spanish Tax Authorities have published on its website a release regarding the new procedure for the deferral of VAT on imports, announcing that, since such date, it is no longer mandatory to include a guarantee before Customs to endorse the amount of tax.
From 1st of January 2015, with the reform of Law 37/1992 of VAT, a new option for importers in Spain is introduced, according to which, under certain conditions, taxable persons who are within a monthly settlement period, are entitled to defer the payment of import VAT to the moment of submitting the tax return, Form 303, thus achieving to eliminate the financial cost related to the payment of VAT at the time of customs clearance and subsequent recovery process.
Despite deferring this payment instead of being settled when customs clearance, the Spanish Tax Authorities had kept the obligation to provide before the Customs a sufficient guarantee that covers the payment of the tax. However, as published by the Agency on its website, the warranty will no longer be mandatory, thereby facilitating customs processing for the importers.
We recall that this procedure of deferral can be vital to eliminate a high financial cost, thus we recommend its previous analysis in order to comply with the procedural requirements in the application and implementation.
In the following link you can access to the publication of the Spanish Tax Authorities: