Skip Ribbon Commands
Skip to main content

Recovering Value Added Tax (VAT)


There are several mechanisms available for recovering VAT incurred while attending or participating in an INTA event in Spain. These mechanisms depend on your VAT status in Spain and where your business is established.

If your business is registered for VAT in Spain, you can recover the VAT you incur at INTA's event through submission of your Spanish VAT returns, regardless of where your business is established. Simply include the VAT incurred in your quarterly Spanish VAT return.

If your business is not registered for VAT in Spain, the recovery mechanism depends on where your business is established. If your business is established within the EU, you can recover the VAT incurred in Spain via the Refund Directive, the mechanism designated for EU companies. A claim is then submitted to the Spanish VAT authorities via the portal or your country of establishment.

If your business is established anywhere outside of the EU, you may be able to recover the VAT incurred in Spain via the 13th Directive, the mechanism designated for non-EU companies. A claim is then submitted to the Spanish VAT authorities. Recovering a claim via the 13th Directive in Spain may be difficult, as it is dependent on the concept of "reciprocity." This means that in order for your business to recover the VAT incurred in Spain, your country of establishment must also allow businesses from Spain to recover the consumption tax (GST, VAT, sales tax, etc.) they incur in your country. As a general rule, U.S. companies have not been allowed to recover Spanish VAT under the 13th Directive recovery mechanism due to lack of reciprocity between Spain and the US.

However, new Spanish legislation was put into place that created an exception to the general reciprocity rule. The new legislation, which came into effect on January 1, 2015, allows non-EU businesses to recover VAT incurred on services consisting of access, accommodation, restaurant or transport linked to the attendance of exhibitions of a commercial or professional nature. This means that non-EU businesses can now recover the VAT incurred on admission fees, hotel rooms and other services in relation to INTA's Spanish events via the 13th Directive regardless of the reciprocity your country of establishment has with Spain. Please note that the above services do not include sponsorship, which would still be subject to reciprocity arrangements with Spain.

Sponsorship will be subject to Spanish VAT due to the use and enjoyment rules. U.S. companies unfortunately are not be in the position to recover such VAT due to the lack of reciprocity between Spain and the U.S.

Sponsors

© 2015 International Trademark Association        My Powerful Network