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Practical Handbook VAT 2022

Requirements

  1. Those entrepreneurs or professionals who meet the following requirements may apply for a refund of VAT which they have paid or which has been charged to them on the Spanish mainland or the Balearic Islands:

    1. Be a taxable person for VAT or similar tax in their country of residence, which must be accredited in the manner indicated in the section on "Procedure for requesting a refund".

    2. Be established in the Community, the Canary Islands, Ceuta or Melilla or in another third territory.In the case of entrepreneurs or professionals established in a third territory other than the Canary Islands, Ceuta or Melilla, the existence of reciprocity of treatment in favour of entrepreneurs or professionals established in the territory of application of the tax must be recognised by decision of the Director General of Taxation of the Ministry of Finance and Public Function.

      However, such reciprocity shall not be required in order to obtain a refund of input tax on imports of goods and acquisitions of goods and services relating to:

      • The supply of jigs, moulds and equipment acquired or imported into the territory of application of the tax by a non-established trader for supply to a trader established in that territory for use in the manufacture of goods which, on completion of manufacture, are dispatched or transported out of the Community to the non-established trader.

      • Access, hotel, catering and transport services linked to attendance at trade fairs, congresses and exhibitions of a commercial or professional nature held in the territory where the tax applies.

      Nor shall such reciprocity be required in the case of non-established traders or professionals making use of the special schemes applicable to taxable persons supplying services to non-taxable persons, making distance sales of goods and certain domestic supplies of goods.

      With effect from 2 March 2022, the sixth additional provision of Royal Decree-Law 3/2022, of 1 March, establishes that no such reciprocity will be required in the refund to businessmen or professionals not established in the Community who pay or pay tax as a result of transactions related to the holding of the final of the "UEFA Europa League 2022".

    3. Not having a permanent establishment on the Spanish mainland or on the Balearic Islands or, if you have one, not having made any supplies of goods or services from that establishment.

    4. That during the period to which the application refers they have not carried out in the territory of application any transactions subject to the same other than:

      • Supplies of goods and services where the taxable persons are the recipients of the goods or services by way of investment.

      • Transport services and their ancillary services, exempted from tax pursuant to Articles 21, 23, 24 and 64 of the Law on VAT.

    5. That, during the period to which the application refers, the interested parties have not been taxable persons for Spanish VAT by application of the "reverse charge" mechanism regulated in Article 84.1.2 and 4 of the VAT Law.

  2. Persons established in a third territory outside the Community must first appoint a representative resident in the territory who is responsible for fulfilling the formal or procedural obligations and who shall be jointly and severally liable in the event of an unjustified refund.

    However, entrepreneurs or professionals not established in the Community who make use of the special schemes applicable to taxable persons supplying services to non-taxable persons, who carry out distance sales of goods and certain domestic supplies of goods, shall not be required to appoint a representative to the tax authorities.

    This obligation shall also not apply in the case of entrepreneurs or professionals established in the Canary Islands, Ceuta or Melilla, nor in the case of entrepreneurs established in the European Community.

  3. In the case of traders or professionals established in the Community, they shall be entitled to claim a refund to the extent that the goods or services for the acquisition or importation of which the tax has been paid are used in transactions which entitle them to deduct the input VAT , both in application of the provisions of the current legislation of the State in which they are established and the provisions of the VAT Law.

    To determine the amount to be refunded, the special pro-rata rules apply.These rules also apply to entrepreneurs or professionals established in the Canary Islands, Ceuta and Melilla.

  4. They will not be refunded:

    1. The amounts unduly charged and borne in the case of intra-Community supplies and supplies for export, which are exempt from tax in both cases.

    2. The amounts excluded from the right to deduct pursuant to Articles 95 and 96 of the Law on VAT.