General information on VAT refunds for travellers

The DIVA system is the model developed by the Spanish State Tax Administration Agency for the electronic stamping of tax-free refund forms submitted by travelers upon departure from the European Union, in order to obtain a refund of VAT on their purchases. This right is regulated in article 21. 2 A) of Law 37/1992, regulating the Value Added Tax.

This digitization process, which is mandatory for all sales made since January 1, 2019, allows the Tax Agency to carry out its controls more efficiently, thus reducing the waiting time at the stamping point, as well as the time of communication of the payment, which is usually done on the same day of stamping.

The system can be outlined as follows:

• The traveler will indicate at the sales establishment that they are going to request a VAT refund for travelers.

• At this time, the establishment will issue the Electronic Refund Document, which will record the request, provided that it has verified the identity and residence of the traveler.

• The traveler must leave the EU with the goods within 3 months of purchase.

• When you are going to leave the EU, you will proceed to the DER visa.

• The procedure will be digital for purchases made in Spain when the point of origin is located in that territory.

VAT refunds for travelers can be obtained by people residing in a country that does not belong to the EU, as well as residents of the Canary Islands, Ceuta and Melilla.

 

The refund policy only covers purchases made by individuals for personal use.

Furthermore, article 21.2.A) refers to the occasional nature of the purchases, so you may also not be eligible for a refund if you are a frequent traveler.

In addition, you must leave the EU territory within 3 months of your purchase of the goods in question.

At the time of purchase you must prove compliance with the requirements, in particular:

• If you are a resident in a third country or territoryYou will need to prove your identity and residence through passport. If the passport does not include any mention of residence (e.g., UAE), you must provide additional proof of residence that allows you to verify this circumstance (employment contract, residence permit, rental agreement, etc.).

• If you are a resident of the Canary Islands, Ceuta or Melilla, You will need to prove your identity and residence, preferably through ID/NIE.

You can get a refund for purchases of goods made in Spain provided the following requirements are met:

• VAT refunds can only be obtained for purchases made in mainland Spain or the Balearic Islands. Purchases made in the Canary Islands or in the cities of Ceuta and Melilla are excluded, as they are not subject to VAT but to IGIC or IPSI.

• The goods acquired cannot constitute a commercial shipment. The destination must be for personal use or for your family members or to offer them as gifts and that, by their nature and quantity, it cannot be presumed that they are the object of a commercial activity.

• These goods must have been acquired on an occasional basis

Deliveries of goods intended for the equipping or provisioning of any means of transport for private use are excluded from this regime (e.g. Tires and fuel).

The provision of services is also excluded.

Regarding online purchases, since the sales establishment cannot verify the traveler's identity, travelers will only be entitled to a VAT refund when the establishment can verify this fact. In no way

Regarding online purchases, since the sales establishment cannot verify the traveler's identity, travelers will only be entitled to a VAT refund when the establishment can verify this fact. Purchases sent directly to your home cannot be eligible for a refund under any circumstances, as in these cases identity cannot be verified.

You must request the VAT refund at the establishment at the time of purchase. The establishment is obliged to issue the invoice and the Electronic Refund Document (DER), available on this electronic headquarters of the State Tax Administration Agency, which will separately state the goods acquired and the corresponding tax.

The retail establishment will verify your identity and your residence outside the European Union; or in the Canary Islands, Ceuta and Melilla:

• If these facts are proven, he will be obliged to issue the DER, of which he will give you a copy.

• Otherwise, it will not issue the DER.

You must prove the effective removal of the goods within the established deadlines. The effective departure is certified through the DER visa.

This visa will be:

• Electronic at the point of departure, if you leave the EU through Spain for your purchases made in Spain. This visa is obtained through kiosks located at the port, airport, or border crossing.

• Manual at the place of arrival, if you are leaving the Peninsula and Balearic Islands bound for the Canary Islands, Ceuta or Melilla.

• Manual at the point of departure, if you leave the EU through Spain for your purchases made in other Member States.

DERs issued for purchases made in Spain are not accepted in Spain when your point of departure from the EU territory is located in another Member State (e.g. Lisbon). In these cases, you must bring the DER printed on paper so that it can be stamped in the Member State from which you leave the EU.

Refunds are subject to control through risk and random criteria that allow verification of compliance with the requirements established in the regulations, so only the visa and validation implies compliance with the refund.

If the visa is obtained electronically via a kiosk, the terminal will give one of the following results:

• Green tick: The DER form is validated and no additional procedures are necessary. In these cases, the refund is approved automatically.

• Red Cross: The traveler must go to the corresponding Customs office, where it will be checked whether all the requirements to validate the DER are met.

  • Only if the staff considers that the requirements have been met will they validate the DER and the result will be compliant for the refund.

  • If the staff considers that the requirements have not been met, the DER will not be validated, and it will remain in a "Non-Compliant" state, without the form being eligible for return.

To obtain a refund, you can choose, at any time, between the following return methods:

• Through collaborating entities authorized by the AEAT. In this case, you must submit the electronic refund documents endorsed by Customs to these entities, who will reimburse you for the VAT paid on the purchase of the goods less the corresponding authorized commission. The refund in this case will be made in cash, credit card, check or bank transfer. You must agree to this return.

• Directly through the shop. You must send the electronic refund document endorsed by Customs to the supplier, who will refund the full amount charged within fifteen days by check, bank transfer, credit card credit or other means that proves the refund. The deadline you have to send the DER endorsed by Customs to the supplier is the general four-year statute of limitations for the supplier's right to rectify the passed-on fees. After this time, the supplier is not obliged to refund the VAT.

You have a maximum of three months from the purchase date to leave the EU with the purchased goods in order to obtain a VAT refund.

Example:

• Deadline: 5 May (confirmed by date of invoice)

• Effective date of departure: before August 31.

If a summary invoice has been issued (which includes several transactions), the period will begin to run from the date of this last document, provided that all purchases have been made within the same calendar month.

In that case, you cannot get a VAT refund on your purchases. It is a requirement that travelers present the goods at the Export Customs.

The electronic refund document of the export Customs is the proof of export that proves that the goods have left the territory of the Union.

Therefore, if you have not presented the goods and the electronic refund document has been approved,The requirements are not met.those to whom the regulations condition the right to a VAT refund.