Recovering Spanish VAT on Expenses: Rules, Process, and Potential Limitations

• VAT refund is possible on expenses paid in Spain
• Spanish VAT authorities allow for the full VAT to be claimed back
• Certain goods and services are excluded or have reduced VAT recovery
• Expenses such as entertainment, food and drinks, and gifts have 0% VAT recovery
• Vehicles costs have a 50% VAT recoverable rate
• Travel expenses, accommodation, and restaurant services have 0% recoverable VAT unless deductible for direct income tax purposes
• VAT refund can be requested once a year in the last VAT return of the civil year
• It is important to follow the rules and principles of the VAT game to ensure successful VAT recovery.

Source: vatdesk.eu

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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