Companies that carry out import operations in Spain may benefit from the Import VAT Deferral Scheme (IVA diferido), which allows import VAT to be declared and deducted in the monthly VAT return rather than being paid at customs. This option can offer a significant cash-flow advantage, as it eliminates the need for an upfront VAT payment upon importation.
Key Features of the Import VAT Deferral Scheme
Under the deferral system, import VAT amounts are declared in the monthly VAT return (Form 303) and deducted at the same time. In practice, this means that no actual cash outflow occurs for the import VAT, making it a cash-neutral process for the importer.
The application period is open during the month of November, and the scheme will take effect from January for approved applicants. Companies must be registered in the monthly VAT return system (REDEME) to qualify for the regime.
Practical Considerations for Importers
Once the import VAT deferral system is applied, several operational points should be taken into account:
1. No changes required in customs declarations.
It is not necessary to indicate this option in import declarations. The customs clearance system automatically verifies, at the time of DUA admission, whether the importer has opted for VAT deferral.
2. Inclusion in the VAT return.
The VAT amounts assessed by the Tax Authorities must be included in the VAT return corresponding to the period in which the import clearance (“levante”) takes place.
3. Compliance and penalties.
Any import VAT amounts notified during a month but not included in the corresponding VAT return will automatically enter the enforcement process (periodo ejecutivo de cobro) on a FIFO basis.
Moreover, the omission or incorrect reporting of import VAT amounts liquidated by the Administration may constitute a tax infringement, potentially subject to penalties.
Advantages of the VAT Deferral System
- No advance payment of VAT at customs.
- Immediate offset in the monthly VAT return.
- Improved cash flow and liquidity management.
- Simplified import procedures.
How to Apply
Applications for the import VAT deferral regime must be submitted to the Spanish Tax Agency during November. The scheme will take effect from January of the following year.
If your company imports goods and wishes to take advantage of this scheme, or if you need advice on the procedure, please contact our firm. Our team will be happy to help you manage your application and answer any questions you may have.
Marina Guerrero Castronuño.