Monthly VAT refunds scheme

For the VAT taxpayers under a continuous VAT refund position, the Spanish VAT regulation provides for a special and voluntary scheme through which the entities registered are allowed to apply for the VAT refund on a monthly basis.

Normally, a VAT taxpayer is entitled to apply for the refund of the VAT credit through the last VAT return of the year (even quarterly or monthly return), to be filed during January of the following year. Additionally, the Spanish Tax Authorities have a six months term as of the mentioned deadline in order to solve the refund application and to proceed, in case, with the payment, this meaning a significant financial cost in terms of VAT for those VAT taxpayers under a regular VAT credit position before the Tax Authorities.

Nevertheless, by applying for this monthly VAT refund scheme (REDEME) the VAT taxpayer is entitled to apply for the resulting VAT credit on a monthly basis. The register under this scheme entails additional formal and informative compliance in terms of monthly filing of the VAT Ledgers return, that is, Form 340.

Moreover, the VAT taxpayer must be updated as regard its tax liabilities, so failure to fulfill would mean the exclusion from the register. Normally, the Spanish Tax Authorities carry out a limited census audit of the applicant before granting the register.

In line with our excellence commitment, Diligens carries out the analysis of the convenience of this special scheme for each client, trying to optimize the input VAT refund process. Diligens assist the clients in the analysis of the VAT scheme advantages, the application and the ongoing VAT compliance of the scheme.

Should you need additional information about the special scheme for monthly VAT refund, please feel free to send an e-mail to info@diligens.es.

We will contact you without any obligation from your side.