Press Release: VAT – Commission takes steps against Spain regarding its rules governing the right to deduct VAT on imports

The European Commission formally requested Spain to bring its national rules governing the right to deduct VAT on imports into line with the provisions of the VAT Directive. The request takes the form of a reasoned opinion (second step of the infringement procedure provided for in Article 226 of the EC Treaty). If, within two months, the relevant national provisions are not amended so as to comply with the reasoned opinion, the Commission may decide to refer this matter to the European Court of Justice.