The Spanish tax authorities have confirmed that in the event of a no-deal Brexit on 29th March 2019, UK-established businesses will have to appoint a fiscal representative to carry out their Spanish VAT filing obligations on their behalf.
Moreover, UK businesses will no longer be able to use the electronic EU VAT refund portal to recover their Spanish VAT. Instead, they will have to file their refund claims via Spain’s VAT refund procedural rules for third countries.
Following Spain’s non-EU VAT refund mechanism, UK companies will only be able to reclaim Spanish VAT on the proviso that they appoint a fiscal representative; and also, that a reciprocity agreement between Spain and the UK is in place. However, there will be no need for reciprocity for recovering VAT charged on costs in relation to:
- Tooling used to manufacture goods that are for export;
- Hospitality and restaurant services and transport linked to attendance at exhibitions and events; and
- Telecommunications equipment.
Spanish non-EU VAT refunds claims must be filed by 30th September of the year following the refund period. Accordance offers expert claim management so if you would like assistance in preparing your refund claims, please on the click on the link below to fill out our VAT recovery form.