VAT recovery in Spain

For non-resident companies which incur Spanish VAT on any supplies, and if they are not Spanish VAT registered, they may submit a special reclaim to recover the VAT suffered.

Claims may be submitted on a quarterly basis. In addition a fifth, final claim can be filed the following year.

Foreign businesses established in another EU country can reclaim any Spanish VAT through the EU 8^th Directive VAT system. The system for the reclaim of Spanish VAT for companies from other EU companies was overhauled and simplified in 2010.

EU companies can now submit Spanish VAT recovery applications through an online portal operated by their own national tax authority. This is then processed and submitted to the Spanish tax authority which must refund the VAT directly to the company. The deadline for submissions is 30 September of the year following the year in which the invoice was raised.

Non-EU companies use a slightly different process for VAT recovery in Spain – the 13^th VAT Directive. Non-EU companies must first ensure that there is a tax reciprocity agreement between Spain and their home territory. If not, then no Spain VAT may be reclaimed. For example, US companies cannot recover Spanish VAT.

If there is reciprocity, the business can complete and submit a special form to the Spanish tax authorities. This should generally be accompanied by supporting original invoices, plus a local tax certificate. Spanish VAT reclaims must be submitted by 30 June of the year following the year in which the invoice was raised. If this deadline is missed, then the VAT is lost. Non-EU companies must appoint a fiscal representative for the purposes of recovering VAT.

Under the EU’s free market principles, foreign companies are permitted to reclaim the same VAT incurred as a resident Spanish company.