Spain may drop annual VAT return requirement for some businesses

The Spanish tax authorities are looking at dropping the obligation to produce an annual Spanish VAT return for certain tax payers.

The Spanish VAT returns (Form 303), which are filed electronically with a payment through an approved bank, are generally submitted on a quarterly basis. The exception is larger enterprises with turnover about €6m.

Annual returns (Form 390) are submitted at the same time as the Quarter 4 return.

The proposal to withdraw the annual return came in Royal Decree 410 last week. It will only be granted where the tax office has gained significant satisfaction of the quality or returns and VAT ledgers maintained by the taxable persons.