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V2415-14 12 September 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen de viajeros

Cannot substitute IVA refund in tourist regime with customer debt cancellation

A professional body of jewellers inquired whether it could offset IVA due to a non-resident tourist against the balance owed by the tourist for a credit sale. The DGT responded that only general or special refund procedures provided by law are allowed.

The question raised

Possibility for the entity to substitute the refund of Value Added Tax under the traveler scheme with a cancellation of the balance owed by its client in the corresponding amount, provided the requirements established in Article 21.2 of Law 37/1992 are met.

The DGT's ruling

The only procedure legally and regulatorily admitted for VAT exemption and the refund of tax to travelers is that provided for in the Tax Regulations, whether through the general procedure or the special procedure via collaborating entities. The destination of the refund amount is a matter distinct from the established exemption procedures.

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