VAT penalties in Spain

This year VAT penalties in Spain were reduced significantly, specially for thos one-day-late payments that foreign businesses may incur due to complex payment requirements.

VAT penalties in Spain

• Late payment
  • Penalties are applied as a % of the VAT due (so called ‘recharges’): – 1% of the VAT due if paid before 1 month after the due date, and an additional 1%  applies for each month passed after the deadlines until the 12th month, this is – 2% if paid between 1 and 2 months after the due date – 3% if paid between 2 and 3 months after the due date – 4% if paid between the 3 and 4 months after the due date, and so on until the 12th month, when the delay is 12 months or more it applies 15%. On top of this, interest must be paid when on VAT payments made 12 months after the due date (i.e. when 15% recharges were paid): – The applicable late payment interest in the relevant year is charged (usually from 2% to 5%).
• Late registration
  • Normally, no penalties for late registration. Penalties are charged as part of the regularization of the VAT returns.

If paid within the deadline provided in the letter where the penalties are stated, the amounts are reduced by 25%. Additional penalties may be charged by the authorities, particularly where the corrections are triggered by an investigation or VAT audit. For penalties on ECSL, Intrastat and other returns, please see the relevant section.

Source Marosa