REFUND OF VAT PAID IN SPAIN BY FOREIGN COMPANIES

CUSTOM INFORMATION

IFEMA, in cooperation with the Chamber of Commerce and Industry of Madrid, makes a new service available to you, namely, the processing of the recovery of Value Added Tax (VAT) paid in Spain.

The Spanish Tax Authorities promptly and straightforwardly refund amounts of VAT paid for different reasons to companies that are not resident in Spain, provided that they are subject to VAT in the following countries:

As a general rule, the grounds for recovering VAT in Spain are as follows:

• Participation in Trade Fairs (hire of stands, services, etc.)
• Stays at hotels
• Restaurants
• Transport of merchandise
• Others

Certain documents together with the original invoices for the goods and services purchased must be presented to the Spanish Tax Authorities.

Do not forget that it is indispensable to have the original invoices of all expenses incurred.

Remind your employees to request valid original invoices when travelling to Spain.

That is to say:

- Invoices must be identifiable as original invoices (copies or duplicates of the original invoice are not valid).
- They must be issued in the name of the company (not the employee).
- They must contain the complete name, address and tax identification number of both the seller and the purchaser of the transaction invoiced.
- Amounts must be broken down into units and total.
- They must bear the date and the invoice number.
- They must state the rate of VAT applicable and the amount of tax.

Processing is very straightforward. It is only necessary to complete the attached bulletin and send it to the fax number or the e-mail address indicated. We will inform you of all the documents that need to be provided, so that in a period of approximately three months (from the date of processing the file), your company will receive in its current account a refund of the amounts of VAT paid in Spain. This service is provided through the company Vat Company Asesores Fiscales S.A.

The valid time period for presenting files for refund ends in June of the year following the date of the invoices received. We should therefore receive all documentation in our offices before 15th May. But do not forget that the sooner you start the process, the sooner you will receive the money.

The cost of the processing service is 10% of the VAT recovered, with a minimum of € 60 per file for refund.

If you wish to recover your VAT through us, contact us so that we can describe the requisites and required documentation. Take advantage of your stay in Spain to start processing your claim for a refund.

As complementary services, we also deal with your tax representation and VAT registration and provide consulting services on Spanish VAT.

These same VAT refund, tax representation, and VAT registration services are provided in the countries previously listed.

  Foreign Exhibitor (PDF Version)

All of the products from non-EU countries must undergo customs processing.

• Exhibitors must have the information on the customs agent who performs the dispatches of their merchandise or, where lacking, a copy of the customs documentation for entry into the European Union.

• The materials or merchandise for distribution or consumption are charged Spanish fees, though they may be products with no commercial value; depending on the country, the amount of the taxes may vary.

• All of the merchandise which requires a T-1 must not be moved from the stand or leave Feria de Madrid until its status has been modified and the customs proceedings have been completed.

• It is totally prohibited to sell or distribute non-EU merchandise at a trade fair that has been declared international before the customs proceedings have been completed.

• Those products shipped as carry-on baggage must be declared at the airport in the Red Lane (“Items to Declare”) and will be withheld until they have undergone the proper customs proceedings

.• The merchandise that has not undergone control by customs but is on exhibit shall be confiscated by the authorities until the proper documents have been submitted.

Recommendations to all of the exhibitors who bring in materials that require a customs dispatch (non-EU)

Processing the merchandise:

• For a trade fair considered to be ‘international’ by the State Secretariat of Tourism and Commerce:

- Merchandise that will be returned to its origin once the fair ends: T-1, EU transit.

- Merchandise for distribution during the trade fair: final dispatch.

- Merchandise for both purposes: documentation and dispatch separate for each type of merchandise.

• For a fair not defined as international:

- Merchandise that will be returned to its origin once the fair ends: ATA folder.

- Merchandise for distribution during the trade fair: final dispatch.

- Merchandise for both purposes: identical processing.