The Spanish Government has published the Royal Decree-Law 11/2020, of March 31 2020, entered into force yesterday, which approves urgent measures to try to mitigate impacts of Coronavirus (COVID-19).
Among others, this Royal Decree-Law allows to import between, April 1st and May 30th, within Spain, simplifying the requirements to defer the payment of customs debt (customs duties, VAT and excise duties) upon the importation, provided that the following circumstances are met:
- For economic operators whose turnover, for the last fiscal year, does not exceed EUR 6, 010, 121.04.
- Customs debt amounting to or exceeding EUR 100 and less than EUR 30,000.
- A guarantee to cover the payment of the customs duties payable may be provided -without prejudice to the possibility of requesting a waiver of the same, according to Article 112.3 of the EU Customs Code-.
In case of all the above-mentioned requirements would be met, the economic operators could pay the customs debt within a period of 6 months, from the end of the term of payment of such customs debt, without being charged from credit interest for the first 3 months.
On the other hand, in connection with the VAT import quotas, it should be underline that, those economic operators importing under the import VAT deferral regime, will not be able to apply for this special deferment. However, they could defer the payment of the VAT return (Spanish Form 303) -in which those import VAT quotas should be included- in accordance to the provisions lay down in Royal Decree-Law 7/2020, of March 12.
In order to be granted with this customs debt deferral regime, the economic operators should ask for through the Import SAD -including code `9019 Request for deferment of payment of the duty payable due to economic impacts of COVID-19´ within Box 44- and it will be granted by the Spanish Customs Authorities at the same time of the release of the goods.
In the event that the importer acts through a customs broker, a prior authorization should be needed in order to the customs broker to ask for the deferment of payment of the customs debt payable.
Notwithstanding the above, those economic operators whose turnover, for the last fiscal year, exceeded EUR 6, 010, 121.04, could ask for the deferment of the customs debt under the provisions establish in the General Tax Law -in the same way as before and being charged from credit interest-.
Nevertheless, any economic operator who is in a duly justified economic or social matter, may ask for payment facilities other than deferred payment on condition that a guarantee is provided. However, the Spanish Customs Authorities may refrain from requiring this guarantee or from charging credit interest on the basis of a documented assessment of the situation of the economic operator.
Furthermore, for more information, the Spanish Tax Authorities has published, on its website, a Q&A questionnaire on this deferment of payment of the customs debt.
From Salinas & Partners, we are at your entire disposal to give proper legal and tax advice in order to mitigate the impact caused by this extraordinary emergency situation.
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