Summary
- Non‑EU businesses seeking VAT refund via Form 361 must prove reciprocity between their country and Spain, per Article 119bis of the Spanish VAT Act. [vatupdate.com]
- The DGT (Directorate‑General of Taxes) is slow to issue reciprocity resolutions, causing routine denials of refund claims. [vatupdate.com]
- The author advocates a more flexible interpretation, allowing taxpayers themselves to evidence reciprocity in line with the 13th Directive’s spirit. [vatupdate.com]
Extended article
Article 119bis of the Spanish VAT Act transposes Council Directive 86/560/EEC (the “13th Directive”). It conditions non‑EU businesses’ access to the special VAT refund procedure on a formal DGT resolution recognising reciprocity. In practice, most non‑EU countries lack such a resolution, leading to systematic refund denials, endorsed by Spanish Economic‑Administrative Courts. The author argues that this literal reading is disproportionate: the substance of the 13th Directive is equitable treatment. A more flexible approach would let applicants demonstrate reciprocity themselves. From 1 July 2024, applications must be filed via a Spanish representative under Order HAC/498/2024 (except for OSS‑covered e‑commerce). [vatupdate.com], [sede.agenc…ria.gob.es]
Sources:
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