Spanish VAT Refund Challenges: Reciprocity Requirements Under 13th Directive for Non-EU Businesses

• Spanish VAT refund procedures for non-EU businesses require reciprocity confirmation under the 13th Directive, with form 361 filing deadlines approaching for the previous year’s VAT recovery claims
• Article 119bis of the Spanish VAT Act mandates that reciprocity recognition must come through formal resolution from the Directorate General of Taxes rather than being presumed or proven by taxpayers themselves
• The Spanish tax administration has been slow to issue required reciprocity resolutions for most non-EU countries, creating practical barriers for businesses seeking VAT refunds through the special procedure
• Spanish tax authorities and Economic-Administrative Courts consistently deny form 361 refund applications from non-EU businesses when no formal reciprocity resolution exists, following a literal interpretation of the law
• The author argues for a more flexible interpretation that would allow taxpayers to prove reciprocity themselves while the formal resolution process continues, suggesting this approach better aligns with the 13th Directive’s intent

Source: ivaconsulta.com

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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