How can I defer or split the VAT payment?

One of the obligations of companies and the self-employed is to make the quarterly VAT declaration, in which the settlement that must be made to the Treasury is established based on the invoices issued and received.

It may happen that at the time of meeting this obligation we do not have enough liquidity. In these cases, can the payment be postponed? The answer is yes. The Tax Agency offers the possibility to do so if we so request.

Deferral of VAT if the debt is less than 50,000 euros

If the debt is less than 50,000 euros, the Tax Agency has a form that allows the VAT to be deferred without the need to justify unpaid invoices and without providing a guarantee. The maximum period for deferring VAT is 24 months for the self-employed and 12 months for companies.

Deferral of VAT if the debt is greater than 50,000 euros

For the payment of amounts exceeding 50,000 euros, the Treasury does require a guarantee. In this case we will be required to justify the non-payment of the tax since the payment procedure is not automated. In this case it is necessary to provide invoices that include the identification of customers and suppliers, the amounts and the due dates. Here, the maximum deferral period is longer, as the debts are higher, and therefore you have up to 60 months to pay off the debt.

When can the deferral of VAT be requested?

The request must be made at the same time as the VAT settlement is submitted, regardless of the resulting amount to be paid. The request must be made using Form 303.

Does the Treasury collect interest or generate surcharges for the deferral of VAT?

This is the question that comes up the most when deciding to apply for a VAT deferral. The answer is affirmative. Therefore, if a postponement or installment is requested, late interest will be charged, which is fixed in the General State Budgets.

If you need more information, don't hesitate to contact DATA AND SERVICES