We
must
first
make a
distinction
with
regard
to
purchases
that
are made
outside
our borders.
If
these
are
done to
a country
of the
European Union
and
imply that
consumption
of the good
or
service is
made
within
our
borders,
we must fill up our registration
as
intra-Community
VAT operators.
By
filling up the registration with the tax authorities
we
will
get an
European
VAT
number
which
will be used
as a
common reference
in
dealings
with the customs
authorities
throughout the
Community.
If
we have
the European VAT registration number
purchases
from
other
country
of the European
Union
shall
bear no
VAT
on your
bill,
while
if we
do not
have it the seller
will
apply
the VAT
tax of its country and this
cannot
be
deducted
as such
and must be
accounted
as a
greater
amount
of the purchase.
But
there are
other
expenses
incurred
by companies
that
support
VAT
that cannot
be deducted
if we
have an
European VAT Number.
These
expenses
are
those
that
companies
incur
as a
result of
movement
of
professional
or business
and
their employees.
So
if a
company has
clients
abroad
or go
to some
kind of event,
there
may
incur
costs
related
to this
activity
by
supporting
the VAT
of the
country where
they
are.
•
Vehicles
rentals
• Expenditures hotels. • Rental of meeting rooms. • Meals. • Entries to the exhibitions and trade fairs.
• Purchase goods not transported out of the country where they were acquired. • Services that are engaged in businesses such as translation services, lawyers, consultants, etc.
• Expenditures hotels. • Rental of meeting rooms. • Meals. • Entries to the exhibitions and trade fairs.
• Purchase goods not transported out of the country where they were acquired. • Services that are engaged in businesses such as translation services, lawyers, consultants, etc.
The
Eighth
Directive
on the
harmonization
of the
laws of
Member
States
relating to
turnover
taxes
business,
provides
that:
• a tax payer established in the Community to which the VAT is applied in a Member State other than the one in which it is established is entitled to recover VAT, can claim back the VAT to the authorities of the Member State which the VAT has been applied.• The refund must be made within six months from the date on which it was submitted to the competent authorities the application, with all relevant documentation.
• a tax payer established in the Community to which the VAT is applied in a Member State other than the one in which it is established is entitled to recover VAT, can claim back the VAT to the authorities of the Member State which the VAT has been applied.• The refund must be made within six months from the date on which it was submitted to the competent authorities the application, with all relevant documentation.
You
can also
recover
VAT in
countries
outside
the
European Union,
provided
there is
a
reciprocal agreement
with
Spain.
Currently
there
are agreements with
Canada,
Japan,
Monaco, Switzerland, Israel and
Norway,
among
others, although
some
countries
have
limited
repayment
agreement
depending
on the
operation performed.
VAT
recovery
could
be a problem
due it
has to be managed
directly
from
the
country
where
he was
satisfied,
which
implies
some
administrative
procedures
that
may
discourage
their
claim,
if the
amount is not
significant.
For
more
information
on how to
claim
back the
VAT do
not
hesitate
to contact
VP Advisers.
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