COVID-19: Spanish customs department expands cases of duty relief and VAT exemption on importation of medical supplies for donation
Spain Tax Alert
The Spanish Customs and Excise and Special Taxes Department has published new information note NI GA 11/2020, expanding to any type of operator duty relief and VAT exemption on imports of medical supplies for donation, provided that certain requirements are met.
In this new information note (see here), the Customs Department relaxes the subjective requirements for the duty relief referred to in its NI 6/2020 (see our alertand the above-mentioned NI 6/2020), permitting duty relief and VAT exemption on medical supplies imported in the context of COVID-19 by any operator, even if it is not a public entity or an authorized private body of a charitable or philanthropic nature, provided that the supplies are imported to be subsequently donated.
To apply the exemption or relief, it will be necessary:
to evidence the donation and the receipt of the goods by the donee, and
the donee must have an administrative authorization to acquire the goods with exemption (which will be issued by the competent provincial or local tax office of the State Tax Agency for the importer’s tax domicile).
Given the impossibility of submitting these documents at the time of release, they may be submitted afterwards. For these purposes, the declarations will be submitted as “simplified declarations due to lack of documents.” This manner of submitting declarations will not be subject to authorization. It will suffice to state the keys and codes specified by the Customs Department in its note.
If the importers are private entities, the relevant guarantee needs to be provided.
In completing the declaration, it is important to state the request for duty relief and VAT exemption in box 37.1 of the SAD, entering the codes referred to in NI 6/2020.
Although these commercial shipments are subject to control by the Border Inspection services, which requires their authorization, such authorization will not be necessary if the private entities have a document signed by a health institution or public entity receiving the goods, in which the use that will be made of the goods is indicated. This document must be attached to the customs declaration.