Spain VAT measures for coronavirus epidemic

29 Dec - allowance for small and medium sized businesses to postpone Q1 VAT for up to 6 months with first 3 months interest free

25 May update - emergency Value Added Tax filing deadline postponment measures (below) are to be withdrawn on 1-4 June 2020.

23 April update - the extended VAT return dealine of 20 May (see below) has been further extended to 30 May 2020.

Import VAT and customs may be delayed on application for payments between €100 and €30,000 for non-large taxpayers (below €6m annual turnover). This facility will be in place until 30 May. Any deferred taxes will be interest-free for 3 months, and must be settled by at least 6 months.

Update 15 April: VAT registered businesses with a turnover below €600,000 per annum in 2019 can delay filing and payments of their VAT Q1 or monthly submissions until 20 May 2020. Unlike earlier measures, businesses do not need to apply for this postponement.

Update 10 April: Treasury considering extending the already postponed 20 April VAT filing deadline for non-large businesses. These are those earning less than €6 million in sales per annum. The next deadline would be 20 July.

Update 8 April: import VAT and customs duties six-month deferments are now possible for amounts between €100 and €30,000. There will be no interest charges. Applications must be made via the customs declarations. This is only available to non-large companies, with turnover below €6million per annum.

Update: The Spanish Canary Island tax office confirmed on 23 March that VAT (IGIC return) is delayed from 20 April to 1 June.

15 March. 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.