Spain has confirmed that it has implemented the postponed VAT accounting method for certain taxpayers that make imports in Spain.
The new regime, effective from 1 January 2015, works by postponing the payment of VAT on imports until the time of the filing of the corresponding VAT return. This removes the cash flow impact that pre-financing import VAT has on many businesses.
The new regime only applies to large businesses (i.e. those with a turnover exceeding 6,010,121.04 Euros); taxpayers applying the monthly refund regime, and taxpayers applying the special VAT grouping regime.
The regime is optional and businesses must apply to the tax authority in order to use it. There are time limits in which to apply for the scheme. Generally, the scheme must be applied for in the month of November in the year preceding that in which it takes effect, however, business wishing to use the regime in 2015 have until 30 January 2015 to apply – in which case the regime will be applicable from 1 February 2015.