The following applications should be requested before 30 November 2020 in order to be effective on January 1st, 2021
a. Request the inclusion/exclusion into the Special Monthly VAT Refund Regime
By default, taxpayers could request the VAT refund through the general regime, by submission of the VAT return at the end of the year (i.e. 4Q or December).
However, the following requirements should be met in order to be eligible for the monthly VAT refunds:
- Taxpayers must submit monthly VAT returns (303 returns);
- So, taxpayers would be obliged to report the transaction in real-time through the SII system;
- Taxpayers will remain registered for the regime for FY21 and future years;
Nevertheless, taxpayers can also request the inclusion on 2021 during the filing period of the relevant VAT returns (i .e. a company submitting the VAT return on a quarterly basis, during the period of submitting the 1Q in April, they request the inclusion on the monthly vat refund regime, with effects as off April 1st. 2021). It will be effective at the beginning of the next VAT return period (in the said example, since April, inclusive, the returns will be submitted on a monthly basis).
b. Request the inclusion on the Import VAT Deferral Regime.
This regime allows taxpayers who import goods into Spain to defer their VAT payments until they file their VAT return, rather than paying the VAT due at the same time as the customs duties.
Bear in mind that the import VAT should be reported into the period in which the tax event took place; otherwise, the debt will automatically become an executive debt.
Mandatory to be already submitting monthly VAT returns prior to seeking approval for the VAT Deferral Regime.
Contribution by Ignacio Hinojo Albiñana
