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Eligibility Criteria: Only businesses without a permanent establishment in Spain can claim a VAT refund. Applicants must be VAT-registered in their home country and not conduct taxable transactions directly in Spain.
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EU vs Non-EU Process: EU-based companies apply through their home country’s tax portal (via Directive 2008/9/EC), while non-EU businesses must appoint a Spanish tax representative and apply directly through Spain’s Modelo 361.
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Application Deadlines: EU companies must submit refund applications by September 30 of the following year; non-EU companies must apply by June 30. Missing these deadlines forfeits the right to a refund.
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Minimum Refund Thresholds: To be eligible, refund claims must exceed €400 for quarterly applications or €50 for yearly or final period applications, applying to both EU and non-EU businesses.
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Supporting Documents: Applicants must provide complete invoices, VAT details per transaction, bank information, and identification. Scanned invoices are required when the tax-free base exceeds €1,000, or €250 for fuel expenses.
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Non-EU Documentation: Non-EU applicants must submit a notarized power of attorney for their tax representative and a certified VAT registration certificate from their home country tax authority.
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Eligible Expenses: Refunds apply to specific professional expenses such as fuel (partially), hotels, tolls, parking, and trade fairs. Expenses like catering and client gifts are generally non-deductible for non-residents.
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Tracking & Processing Time: Refund applications are tracked via national portals (EU) or Spain’s Sede Electrónica (non-EU). Refunds are typically processed within 4 months, extendable to 8 months if additional info is needed.
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Payment Method: Refunds are transferred via bank to the applicant’s account listed in the application. Any international bank transfer fees incurred are the sole responsibility of the claimant business.
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Common Pitfalls: Frequent mistakes include submitting non-compliant invoices, including ineligible expenses, neglecting NIF registration for B2B cases, or submitting late applications—each can delay or invalidate a VAT refund claim.
Source: www.eurofiscalis.com
