Spain closes tax office on coronavirus epidemic
- Mar 15, 2020 | Richard Asquith
Update: The Spanish Canary Island tax office confirmed on 23 March that VAT (IGIC return) is delayed from 20 April to 1 June.
Spain had already announced last week VAT and other tax payment holiday for small businesses who apply for relief for the coronavirus (Covid-19) outbreak. The scheme is not available for large businesses (above €6m turnover) or if the Value Added Tax due is above €30m. Follow Avalara’s live global coronavirus Covid-19 VAT measures tracker.
Royal Decree-Law 7/2020 of March 12 contemplates a series of measures to make deferrals more flexible for SMEs and the self-employed. Any applicant must provide details of:
The applicant who intends to take advantage of the flexibility established in the Royal Decree Law must pay special attention to the following fields:
- Type of guarantees offered
- Proposal of repayment terms; number of deadlines
- First instalment date: the date six months from the end date of the ordinary deadline for submitting the self-assessment must be included (for example, the monthly self-assessment of VAT MOD 303 for the month of February expires on the 30th March, so the date to be included would be 30 Sept 2020).
- The first 3-months of deferment will be exempted from the normal 3.75% penalty interest.