Plan Ahead: VAT on Imports for 2024 – Don’t Miss the November Deadline

• VAT on imports in Spain is liquidated by Customs and must be paid before goods are cleared
• Companies can apply for exemptions or special Customs regimes to avoid paying VAT
• Import VAT can be recovered through compensation in the periodic VAT return
• This process incurs a financial cost for non-established companies with no VAT chargeable
• Companies with a turnover under 6 million Euros must apply for VAT refund in the fourth quarter VAT return
• Companies can opt for a deferral regime for import VAT payment to eliminate financial cost
• The option must be made in November through the Spanish Tax Agency website
• The option will take effect from January 1st of the following year until a renounce application is filed
• Companies with VAT receivable and significant input VAT from imports should consider exercising the option before the November deadline
• Companies changing their status in 2024 may have to wait until November 2024 to apply for the deferral regime
• Companies can reduce financial cost by applying for registration at the REDEME and filing monthly VAT returns
• Companies wanting to benefit from the monthly refund regime in 2024 must file a census application before November 30th or before the deadline for the fourth quarterly VAT return in January 2024.

Source: ivaconsulta.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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