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:

  1. 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.
  2. Import VAT for approved operators may be deferred through the use of the reverse charge
  3. Changes to the rules for the reversal of VAT paid on bad debts