• Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/15/2013

Spain - VAT cash accounting regime, effective in 2014 

October 15: A new value added tax (VAT) “cash accounting regime” is introduced in Spanish law, effective 1 January 2014.

The VAT cash accounting regime—while new in Spain, is already applicable in several EU countries—generally allows buseinsses that satisfy certain conditions to postpone making remittances of VAT to the Spanish tax authorities until customers pay for the goods or services. Specifically:

  • Remittance of the output VAT charged can be delayed, until payment is made by customers.
  • Input VAT borne by customers of the business may be delayed until the customers decide its applciation (thereby, delaying recovery until suppliers are paid).

Read an October 2013 report [PDF 54 KB] prepared by the KPMG member firm in Spain: VAT Special Cash Accounting Regime

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