VAT refund claim for non-established

The European Directive 9/2008/EC establishes the mechanism for the refund of the input VAT quotas by taxpayers established in an EU Member State other than the one where the input VAT quotas have been borne.

Under certain requirements, in so far as a Spanish VAT taxpayer performs transactions in other EU Member State giving rise to input VAT quotas and it does not get the status of VAT taxpayer in such country due to the transactions carried out, it will be entitled to claim for the VAT refund through the special procedure regulated under EU Directive 9/2008/EC.

Spanish VAT taxpayers who intend to claim for the refund of the input VAT incurred in other EU Member State shall apply electronically through the internet page of the Spanish Tax Authorities, using the Form 360.

In this regard, the refund claims can be quarterly or yearly, solely referring to the input VAT incurred during the quarter the claim refers to, or during the previous calendar year of the one the application form is filed. Definitive deadline for filing the application form is September 30th of the year following the one the input VAT refers to.

On the other hand, for non-EU entities which intend to claim for the input VAT in Spain, the 13º EC Directive 86/560/EEC establishes the proper mechanism for the refund. For such purposes, and referring to claims with recipient the Spanish Tax Authorities, a reciprocity agreement between Spain and the country of establishment must be in place. Furthermore, electronic submission is mandatory, through the internet page of the Spanish Tax Authorities, as well as the appointment of a Spanish tax representative, in charge of e-filing the application form.

 At present, only Switzerland, Norway, Monaco, Israel, Japan and Canada have concluded a reciprocity agreement with Spain, even though only VAT deduction of certain services are included in the agreement of some of these countries.

Diligens has a wide experience in assisting with the preparation and submission of the VAT refund claim of Spanish entities which have borne input VAT in other EU Member States, as well as with the assistance of appealing against negative resolutions from the Spanish Tax Authorities concerning refund claims filed by non-resident entities. Furthermore, Diligens can be appointed as tax representative for the non-EU entities that need to apply for the VAT refund in Spain.

Should you need additional information about the VAT refund claim procedure for non-established VAT taxpayers, please feel free to send an e-mail to info@diligens.es.

We will contact you without any obligation from your side.