Spanish VAT recovery and compliance changes
Mon 11th Aug 2014
A range of Spanish VAT compliance changes have been proposed in the latest amendment to the VAT Law. The changes will be implemented on 1 January 2015, subject to approval by the Spanish Parliament.
The changes include:
- A range of services provided to non-EU companies from countries without a tax reciprocity agreement will become eligible for VAT recovery claims under the EU 13th Directive. These services include: hotel accommodation and restaurant services for live events and exhibitions; and the purchase of certain manufacturing equipment for local use but which is eventually removed from Spain.
- Import VAT for approved operators may be deferred through the use of the reverse charge
- Changes to the rules for the reversal of VAT paid on bad debts