How to get refit or maintenance works VAT exempt in Spain.
We are sure that you have heard many times about the Inward Processing or TPA , as we call this procedure in Spain. Whether you are already an expert on the matter or it’s your first time hearing this term, in Evolution we bring you all the secrets behind.
Inward processing or TPA is a complex customs regime that allows the temporary importation of non-European vessels so they can make repairs, works and refit VAT exempt.
The main advantage of this procedure is that the vessel will save the 21% VAT on supplier’s invoices, which applies not only to the invoices from Spanish companies, but also from suppliers registered in other countries . The importation of any spare parts related to your TPA can be bonded to this regime, which avoids the payment of custom import taxes and VAT.
TPA does not count towards the 18-month temporary importation allowance for non-EU vessels, which is an added advantage. At Evolution, you are guaranteed to be assisted in the whole clearance and ustoms process for the yacht during the refit in terms of management and accountability . A n in-house registered customs broker will assist you with no intermediaries .
However, it is important to note that not every vessel can benefit from this VAT exemption on their maintenance works or refit. Only superyachts with a non-European flag, non-European owner and with some other requirements that we need to review as part of our previous analysis with the official documentation of the vessel, are eligible for Inward Processing.
Apart from this inconvenience, TPA can only be opened and closed in a port inside a customs area . In Spain , is possible to do TPA works in Palma, Barcelona, Tarragona, Valencia, Vilanova, Cartagena and many more ports. Evolution can open and manage your Inward Processing in all of them .
Once the time of closing the TPA has arrived, there are three ways to proceed.
TPA is a complicated process. Even if you meet all the requirements to proceed with your Inward Processing, a small mistake might cause you paying VAT for your refit and maintenance work. Therefore, having an Authorised Economic Operator as Evolution , who has successfully managed over 460 TPA’s , to carry out the whole procedure while being in contact with Customs at all times , will ease the process significantly bringing you peace of mind . As an officially registered Customs Agent with many years of experience in the yachting industry , Evolution can guide crew, management, and contractors throughout the whole process. This ensures that everything complies with the current Spanish Fiscal and Customs requirements .
In case you need legal advice or consulting regarding your TPA, prior, during or after it, do not hesitate to contact Alfons, our in-house lawyer, specialized in nautical law at legal@evolutionagents.com and our experienced TPA team in tpa@evolutionagents.com .
Evolution Yacht Agents is the leading-edge team of professionals dedicated to providing assured and quality support and services to yachts in Spanish waters.
A full range of superyacht specialized services includes: charter license & legal advice, TPA (Vat exemption), customs & logistics operations, provisions & interior supplies, deck & engineering supplies and crew & VIP services.
