Since the entry into force of Brexit, UK exports to European Union countries have fallen by 40% compared to the same period of the previous year.
In addition to the bureaucratic difficulties that have increased substantially, the additional cost of taxing UK products with the VAT in force in each country has made the price of the products more expensive, making them less competitive in the countries of the European Union.
Likewise, purchases made by UK companies in European Union countries have become more expensive as they increased with the amount of the tariff (in some cases) and VAT. But this VAT paid for purchases in Spain by British companies can be recovered by them in a simple way.
We detail the methodology and procedure your company needs to follow in order to apply.
IS THERE A MINIMUM AMOUNT?
Refund amount of tax may not be less than €400 for quarterly requests or €50 in the case of annual requests.
WHAT ARE THE APPLICABLE REGULATIONS?
- Council Directive 2006/112/EC, of 28 November 2006.
- Directive 2008/9/EC of the Council of 12 February 2008.
- Council Directive 86/560/EEC, of 17 November 1986.
- General Tax Act 37/1992 of 28 December.Articles 117.bis,119 and 119.bis, following textrevision carried out in Act 2/2010 dated 1 March (Official State Gazette, 02/03/10), with effect as from 1 January 2010
- R.D.1624/1992 of 29 December passing the VAT Regulations:Articles 30 ter, 31 and 31 bis, following text revision carried out in Act
192/2010dated 26 February (Official State Gazette, 02/03/10).
- Order EHA/789/2010, dated 16 March (Official State Gazette (BOE) of 30.03.10).
SPANISH TAX OFFICE OPERATIONS VIA e-office
In the e-office http://www.agenciatributaria.gob.es the following links to request refund, to carry out formalities and to obtain information are available:
- Form 360-Form 361.VAT. Processing refunds to employers or professionals not established in the territory in which the tax is paid.
- Guide for submitting form 360.
In the top right-hand corner you will find the link to My Files (with electronic certificate) where you will find complete information on your refund applications, including the date on which they were referred to the status of refund and the moment when the said status returns the acknowledgement of receipt.
In the same way, the VAT corresponding to its sales to Spanish customers, which will not be paid by them, since the tax rate thereof would make the sale operation unlikely, CAN ALSO BE RECOVERED. In this case, the methodology and procedure is more complex, and involves the creation of a branch, a permanent establishment, or, where appropriate, a company in Spain.
This matter will be the subject of our next post.
Read detailed procedure on how to apply for VAT Refund to Spanish authorities