Global VAT Group COVID-19 Measures

Spain COVID-19 VAT Measures

Correct as of 23 March 2021

Moratorium on payment:
Royal Decree-Law 5/2021, of 12 March, on extraordinary measures to support business solvency in response to the COVID-19 pandemic, allows the payment of form 303 for the first quarter of 2021 to be deferred for up to six months, without accrual of interest during the first four months. The debtor must be a person or entity with a turnover of no more than €6,010,121.04 in 2020 and the deferred debt must not exceed €30,000.

0% rate for certain transactions involving goods required to combat the effects of COVID-19. (art.8 of RDL 15/2020):
From 23 April 2020 until 30 April 2021, the 0 per cent VAT rate will be applied to supplies, imports and intra-community acquisitions of goods provided for in the Annex to the applicable RD Law, whose recipients are public law entities, clinics or hospital centers, or private social entities (art. 20.3 of the VAT Law).

For the period from 1 November 2020 to 30 April 2021, the goods are listed in the annex to Royal Decree-Law 34/2020 of 17 November. For further information:

These transactions will be documented on the invoice as exempt transactions. However, the application of a zero percent tax rate does not limit the right to deduct input VAT of the taxable person carrying out the transaction.

VAT treatment in the case of deferment, remission or reduction of the rental of premises as a result of COVID-19:
If landlord and tenant agree to a suspension of the rental agreement or a moratorium, suspension or grace period on the payment of rent, such as in the case of temporary closure of the business due to COVID-19, no VAT will accrue during such suspension, moratorium or grace period.

If a reduction in the amount of rent is agreed, the VAT will be 21% of the amount of the new rent agreed.

For further information contact:

Marc Ivars
MGI Àmbit

Barcelona, Spain

T: +34 933 233 100


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