It should be noted that when applying for VAT refunds for expenses incurred in the Canary Islands or Melilla, despite the fact that they are autonomous communities of Spain, they enjoy a high degree of autonomy in tax terms and separate VAT rates – applications must be submitted directly to these regions.
Every company generates revenues and costs. But if you building a business that incurs expenses in Spain, you can claim a refund of the VAT (IVA). Find out how you can get a VAT refund in Spain.
What conditions do you have to meet to receive a VAT Spain refund?
The ability to claim a VAT refund (in this case: “Impuesto Sobre el Valor Anadido”, or IVA) is available to a business (sole proprietorship or partnership) that is an active VAT taxpayer and has incurred expenses in Spain related to the business.
The business (applicant) must not be registered as a taxpayer in Spain.
What documents do you need to have in order to apply for a VAT in Spain refund?
The basis for filing a claim for a VAT refund from Spain is documented by confirming the purchase of the product or service. The Spanish office (Agencia Tributaria) requires properly issued invoices (with complete details of the purchaser) in order to claim a VAT refund.
The documents must specify the input VAT (IVA) at the standard (21%) or reduced (10%, 4%) rate.
Where to apply for a VAT in Spain refund?
Each time a VAT refund application from Spain must be sent to the tax office with jurisdiction over the business. The tax office verifies the basic data on the company, and then forwards the application to the office that handles VAT refunds in Spain (Agencia Tributaria).
It should be noted that when applying for VAT refunds for expenses incurred in the Canary Islands or Melilla, despite the fact that they are autonomous communities of Spain, they enjoy a high degree of autonomy in tax terms and separate VAT rates – applications must be submitted directly to these regions.
What amount of VAT in Spain can you recover?
The application takes into account the amount of VAT (IVA) at the rate applied to the invoice in question (21%, 10% or 4%), and it is this amount that is claimed when submitting the application to the Spanish office.
Any business applying for a VAT refund from Spain has the option of filing a claim for an entire year or a single quarter.
If the application is for a quarter, the minimum amount that can be claimed is €400. For full-year claims, the minimum amount that can be claimed drops to €50.
What can you recover VAT from Spain for?
In your claim for VAT reimbursement from Spain, you can include invoices for the purchase of fuel, oil, tolls, repairs, parking, or accommodation. It is important that all costs incurred are related to your business while being an active VAT taxpayer in Poland.
How long does it take to receive a VAT Spain refund?
The Spanish office “Agencia Tributaria” (just like any other VAT refund office) has 4 months to process a VAT refund request, counting from the date of receipt.
Please note that as part of the processing of the application, the official has the right to send a summons regarding the application in question, requesting additional information and/or documents.
In this case, the time for processing the application is extended by another 2 months.
Visit PolishTax to find more information about the VAT (IVA) and accounting services in Spain and other countries.