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The VAT expert's eye

Managing the cash flow of your company is a key issue. Despite the principle of VAT neutrality, cash-flow inconvenience derived from the VAT system is a major concern and is perceived as having a significant financial impact. However, Spain offers procedures whereby said cash flow inconvenience can be mitigated or avoided.

Companies importing goods from a Third Country into Spain must pay attention to the following issues:

  • Check whether or not the importation can be VAT exempt (bonded warehouse, VAT warehouse, tax warehouse, importation of goods followed by a subsequent intra-EU supply etc.);
  • If no VAT exemption is applicable, proceed with the Spanish VAT registration;
  • Check the conditions to apply the postponed accounting or deferred payment of import VAT in Spain;
  • Determine the consequences (monthly VAT return and real-time SII) in terms of administrative overload associated with this scheme.