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V2800-17 30 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · devolución de cuotas soportadas

Non-established entrepreneurs performing VAT-liable operations in Spain cannot use the Article 119 refund procedure

A German transport company has enquired about recovering VAT incurred in Spain after providing services to end consumers on Spanish territory. The DGT has ruled that, as the company is a taxable person for its operations in Spain, it cannot use the refund regime for non-established persons, but must instead follow the general rules for the refund of credit balances.

The question raised

Method of obtaining a refund of the tax paid in the territory of application of the Spanish Value Added Tax.

The DGT's ruling

To request a refund pursuant to Article 119, the non-established entrepreneur must not have made supplies of goods or services subject to tax in Spain, subject to specific exceptions. Since the taxpayer performs services that render her a taxable person, she must apply the general rules of Articles 115 and 116 of Law 37/1992 to recover the input tax paid.

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