How do you recover your VAT in Spain?
What are the conditions for securing a VAT refund in Spain?
A company established in a member country of the European Union which has incurred specific taxable expenditure in Spain can recover its VAT as long as the company has not conducted any taxable operations in the country.
VAT is then deductible from its business expenses and it can recover a certain amount of the costs incurred in a commercial transaction.
The purpose of this article is to assist you in handling your administrative procedures, summarising the key elements of the VAT refund process in Spain.
This article is intended for companies established within the European Union. If you are a company established outside the European Union you are required to appoint a tax representative in the country who will be responsible for handling these procedures. The tax representative must be subject to VAT, established in Spain and accredited by the tax authority.
Please contact us for further information or go to our page on VAT refunds for countries outside the European Union.
|Hotel and accomodation||YES|
|Conferences and seminars||YES if VAT charged|
|Training||YES if VAT charged|
|Goods transport||YES if VAT charged|
Requirements of the VAT refund procedure
First, you must list expenditure which may be refundable depending on your costs.
Above is a summary table of expenses that may be deductible, but please note that this is not an exhaustive list and certain categories may have specific provisos.
You can also visit our page on the 12 techniques for becoming a VAT refund expert.
Pre-requisites for requesting a refund in Spain
First, be aware that the request must be submitted by 30th September of year n+1.
The request must be made using an electronic form available at the tax authority website of your country of origin.
Your dossier can be filed quarterly or annually. It is important to comply with the following minimum thresholds when submitting this request:
400 euros or the equivalent in the national currency if the refund period is between three months and one calendar year and 50 euros if the period relates to a calendar year.
You may also consult the official document of the European Commission for further information on the procedure to follow to file your request with the Spanish Tax Authority.
What supporting documents are required to claim your VAT refund?
Invoices are required for amounts in excess of 1000 euros. If an invoice is for diesel costs, you will also be required to present your invoice for any amount of 250 euros and above. You will be able to attach the invoices directly to your electronic file on the platform (maximum file size is 5 Mb).
Based on experience, ASD advises you to submit a complete and valid claim in order to ensure swifter processing and to avoid inconvenience during the procedure.
What is the VAT refund period in Spain?
The member State has 4 months to process your complete file with effect from the date of receipt of the electronic file. However, if the administration requires additional documents, the period may extend to 8 months. Once the claim is approved, payment is then made within 10 working days. If your claim is rejected, you will be informed of the reason within 8 months of its receipt. Be aware also that interest can be paid in the event of a late refund. It is always possible to appeal against a decision to refuse or partially reject a claim.
However, it is advisable to avoid this type of situation by using the services of a tax agent or a tax representative who will be able to provide sound support in the steps you need to take. This solution is often used in the case of large amounts of deductible VAT or when the categories of expenditure require in-depth analysis.
ASD is a tax firm specialising in the recovery of VAT. For further information on our services please visit our dedicated page or contact us via our contact form. We shall be delighted to assist you in your activities and handle your refund requests. Be aware that we can recover your VAT, not only in Spain but also in the 27 other member States of the European Union.