Spanish VAT recovery
Claims may be submitted on a quarterly basis. In addition a fifth, final claim can be filed the following year.
How do EU companies reclaim Spanish VAT?
Foreign businesses established in another EU country can reclaim any Spanish VAT through the EU 8th 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.
How do non-EU companies reclaim Spanish VAT?
Non-EU companies use a slightly different process for VAT recovery in Spain – the 13th 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.
What type of Spanish VAT can be recovered?
Under the EU’s free market principles, foreign companies are permitted to reclaim the same VAT incurred as a resident Spanish company.
Need help with your Spanish VAT compliance?
Researching Spanish VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.
Latest Spanish news
March 03, 2019
The Spanish tax authorities are warning UK companies of the obligation to appoint a local fiscal representative for compliance and reclaims in the event of a no-transition deal Brexit on 29 March 2019...
January 25, 2019
The European Commission (EC) has proposed switching from unanimous to majority voting on EU VAT and other tax policies. The aim is to progress fiscal reforms which face immovable opposition from just a limited number of member states...
January 09, 2019
The EU VAT Directive has been updated from 1 January 2019 to introduce a voluntary generalised reverse charge measure on domestic transactions in member states.
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