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Information note on VAT refunds for non-established taxpayers


2009-08-01

APPLICABLE REGULATIONS



European Community Council Directive 77/388/EEC of 17 May 1977.



European Community Council Directive 79/1072/EEC of 6 December 1979.



European Community Council Directive 86/560/EEC of 17 November 1986.



Law 37/1992 on Value Added Tax (Ley 37/1992 del IVA): Section 119




VAT Regulations, approved by Royal Decree 1624/1992 (RD 1624/1992): Section 31



WHO CAN APPLY FOR A REFUND?



You can apply for a VAT refund for VAT paid or incurred in Spanish territory if you meet the following requirements:


  1. If you are a VAT, or similar, taxpayer in your country of residence.

  2. If you are established in the territory of the European Union, including the Canary Islands, Ceuta and Melilla, or if you reside in one of the countries where there is a reciprocity agreement (Canada, Japan, Norway, Monaco and Switzerland) .

  3. If you do not possess, in the territory of the Spanish peninsula or the Balearic Islands a permanent establishment or, should you possess such an establishment, that you have not carried out any transactions from it.

  4. If you have not carried out any transactions in Spanish territory, or if you have only carried out transactions with a right to a refund, consisting of:


  5. Delivery of assets and provision of services, including intra-community transport, in which the taxpayer is the recipient of said transactions (“investment by the taxpayer”).


    Transport related to the importing and exporting of goods, or directly related to the delivery of goods in a duty free zone, bonded warehouse or similar deposit, and similar Customs and Excise Regimes.


    Some specific provisions of accessory transport services referred to in the previous paragraph are exempt from the tax.


  6. If you have not been the recipient of goods or services under section 70 one, numbers 6 and 7, 72, 73 and 74 of the Law, which are subject and not exempt from the Law under which tax has been paid.



CAN YOU APPLY DIRECTLY OR THROUGH A REPRESENTATIVE?



Should the applicant not reside in the European Union, it is necessary to appoint a representative in Spain through a publicly recognised power of attorney. Applicants who reside in a European Union country may appoint a representative if they so choose.




If the refund is to be collected by a representative, the power of attorney granted must expressly grant this power.



HOW AND WHERE DO I APPLY?



A) You can make a refund application by Internet, using the Tax Agency website (www.aeat.es /Virtual Office/Filing of returns/ Mod.361), either directly by the applicant or through a representative, provided that one of the parties has a tax identification number (N.I.F), and a X.509.V3 user certificate issued by an Issuing Authority recognised by the Tax Agency (consult the list on the website www.aeat.es /Assistance with electronic filing of tax returns).
In the case of first applications, or a new representation, you must first send to our Offices the certification issued by the competent authorities in the State where you are established which demonstrates that you are involved in professional or business activities which are liable for VAT or a similar tax, together with the representation document.



B) You may also apply in writing by using the official form approved by the Spanish Treasury (Form 361), which you can download from the web page ( www.aeat.es / Templates and forms/ Tax returns / VAT/ Mod.361 ).
In this case, the application may be made in person (by the taxpayer or representative) or by registered delivery (should this be sent from outside Spain, the date to be taken into account for administrative purposes is the date that it is received in our Offices), to the following address:



Delegación Especial de la Agencia Estatal de la Administración Tributaria de Madrid
Recepción de Documentos. IVA de no residentes.
C/ Guzmán el Bueno, 139
28071 MADRID



Note:




Applications for refunds should be accompanied by the following documents (where applicable):


  1. Certification issued by the State Administration in which the interested party is established demonstrating that they pay VAT or similar tax in said State, specifying their tax identification number in that country and the business they perform.
  2. Should the party be acting through a representative, a document demonstrating compliance with the requirements already mentioned. (Consult the section on representation)


The applicant should keep and have available for the Tax Agency, the originals of invoices or import documentation. Should such documents be requested, they must be supplied within a period of 15 days. Failure to provide such documentation upon request will result in the refund application being denied. If the applicant wishes to have the original documents returned, they must attach a copy of each of the documents.


When the application is sent by courier, the company used must be expressly authorised to allow the envelope or packet to be opened before the delivery receipt is signed.



REMEMBER THAT IF YOU APPLY BY INTERNET, YOU CAN CHECK ON ITS PROGRESS AT ANY TIME.



WHAT PERIOD DOES THE REFUND APPLICATION APPLY TO?




Applications for refunds may only be made with respect to the immediately preceding year or quarter. The application may also refer to a period of less than a quarter, when this represents the entirety of the transactions carried out in a full year, provided that they finish on 31 December of the year in question.



IS THERE A MINIMUM AMOUNT FOR A REFUND APPLICATION?



The total amount of the refund may not be lower than 200 euros (for a quarterly application) or 25 euros (for an annual application).



WHAT IS THE FINAL DATE FOR APPLYING?



The deadline for filing the refund application is 6 months following the end of the calendar year in which the payments have been made. Applications received in our offices after 30 June will be rejected for being outside the time period allowed.




REFUND METHOD



The refund will be made by bank transfer to a financial institution in Spain or the country of the applicant. In order to make the refund, the applicant must include on the application form an account number, the name of the account holder (the applicant or authorised representative) and the address and code number of the financial institution. In order to avoid problems with payments made outside Spain, we recommend that you provide your bank's International Bank Account Number (IBAN) and SWIFT code.



REFUND OF NON-SPANISH VAT



Applications for refund of VAT payments made in other countries (non-Spanish VAT) must be made to the competent body in the country where the VAT was paid (the addresses for the member countries of the European Union are included in the instructions for Form 361).



Under no circumstances should this documentation be presented to Branches or Offices of the Tax Agency; it must be sent directly to the country that should make the refund.




PERSONS ESTABLISHED IN THE CANARY ISLANDS, CEUTA AND MELILLA



The competent body for processing and deciding on applications for refunds by businesses and professionals resident in the Canary Islands, Ceuta and Melilla is the Branch of the Tax Agency corresponding to tax address or, in its absence, the permanent establishment of the party in these territories.





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