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V0138-21 1 February 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · deducción de cuotas

VAT incurred in France not deductible in Spanish tax return; must be reclaimed via recovery procedure

A cleaning company asks whether it can deduct VAT on fuel and accommodation expenses incurred in France. The DGT responds that these expenses are not subject to Spanish VAT and must be reclaimed through the recovery procedure for VAT paid in other EU member states.

The question raised

Deductibility of Value Added Tax amounts incurred due to the travel of workers and the acquisition of fuel. Requirements for invoices received for the acquisition of these goods and services. In particular, when the operations take place in France.

The DGT's ruling

Fuel supplies in France are not subject to Spanish VAT, therefore their recovery must be requested through the procedure for the refund of input tax incurred in other Member States. In Spain, fuel is deductible if it is used for business activities and its professional use is proven. Accommodation services are deductible provided they do not meet the private needs of personnel and their amount constitutes a deductible expense in Corporate Income Tax. In both cases, it is essential to possess the original invoice that complies with legal requirements.

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