EU VAT on no charge products sent from UK to Spain

Hello I have a VAT registered UK company I have a staff member living and resident in Spain. We do not have a Spanish company as such (we are using an accountant in Madrid as a representative office). I want to send the staff member some equipment from the UK for demonstration/testing purposes. There would be no financial transaction taking place, no payment. Will the Spanish staff member be subject to paying local VAT on the value of the goods (even though there is no payment occurring) or is there no VAT due as there is no payment involved? Best regards

Goods going to Spain will be subject to Spanish import formalities and need to be declared to customs there. Import VAT at the local Spanish rate plus any import duties will be due. Import taxes are based on the actual value of of the item . Usually this will be the actual amount paid but where there is no payment an accurate value still needs to be declared. The EU works on similar rules to the UK on customs value so you may find this uk guidance gives you a good indication of expectations.https://www.gov.uk/guidance/prepare-to-work-out-the-customs-value-of-your-imported-goods https://www.gov.uk/guidance/valuing-imported-goods-that-are-free-of-charge-used-rented-or-leased I would however recommend you or your staff member check with the Spanish authorities.

Hi Matthew,
You would need to contact the authorities in Spain to clarify any import VAT charges.
If goods are imported in to the UK for testing purposes and then reexported the UK does operate a relief from VAT/duty for this and so there may be similar reliefs in Spain.
Thank you.

Thanks HMRC Admin 21 Response Do you know if there is a time limit for relief from VAT/duty for items imported to the UK for test purposes?