Where the importation is for business purposes and the importer is registered for VAT, it may be possible to reclaim the tax (subject to certain rules). There is an import deferral regime applicable under certain requirements. The tax will have to be paid by the importer at the time Most goods imported into Spain from outside the EU are subject to VAT. The most important exemptions are (although they restrict deduction of input VAT): Businesses that make exempt supplies are unable to claim all of the input tax that they incur, so the VAT paid to suppliers will be a ‘real’ cost. In addition, some goods and services are exempted from the tax. There are three rates of VAT that are applied to goods and services in Spain the standard rate, the reduced rate, and the super-reduced rate. it is made in the course or furtherance of any business carried on by that person or entity.Īny business that makes taxable transactions in Spain should be, generally, VAT registered in Spain.it is made by a business or professional for valuable consideration, either regularly or occasionally.it takes place within the Spanish territory. ![]() ![]() Where the input tax exceeds the output tax, a refund can be claimed.Ī transaction is within the scope of Spanish VAT if the following conditions are met: The difference between the output tax and the deductible input tax in each accounting period will be the amount of VAT payable to the tax authority. The supplier will charge VAT (output tax) on its sales, and incur VAT (input tax) on its purchases. VAT is ultimately borne by the consumer by being included in the price paid, although the responsibility for charging, collecting and paying it to the tax authority at each stage of the process rests, in general terms, with the business making the supply. It is a tax on consumption which is applied on supplies of goods or services, intra-community acquisitions and imports. Value Added Tax (VAT) is the main type of indirect taxation in Spain and in other European Union (EU) countries.
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