NON-ESTABLISHED VAT REFUND APPLICATION PROCEDURES

Transcription

1 NON-ESTABLISHED VAT REFUND APPLICATION PROCEDURES What are the applicable regulations? Council Directive 2006/112/EC, of 28 November Council Directive 2008/9/EC, of 12 February Council Directive 86/560/EEC, of 17 November Bill transposing certain Directives regarding indirect taxation and modifying the Non-Resident Income Tax Act to adapt it to EU legislation Which procedures are affected? The modified procedure is that through which taxpayers residing within the territory of any Member State request the refund of the VAT charged in a Member State other than that of their residence. Council Directive 2008/9/EC, of 12 February No modification is made to the procedure regulated in Council Directive 86/560/EEC, of 17 November 1986, for the refund of VAT paid within the tax's geographical scope of application by the taxpayers residing in another territory in which the existence of reciprocity has been acknowledged. These VAT refund applications shall continue to be filed directly in the Member State of Refund, following the procedure in place. How and where can I apply for the refund of VAT paid within the Spanish tax's geographical scope of application by Business Persons or Residing in another Member State? Preferences: Applications shall be electronically filed via the Internet using the form provided for such purpose on the Administration website of the applicant's country of residence, which will send it by the same means to the Agencia Estatal de Administración Tributaria, AEAT (hereinafter referred to as the Spanish Tax Agency), the body in charge of processing the refund applications addressed to Spain as the Member State of Refund. In relation to these refund applications: 1. The coding referred to in Article 9.2 of Directive 2008/9/EC for providing additional coded information relative to the codes established in Article 9.1 of said Directive, will not be used to designate the nature of the goods and services acquired. 2. The possibility of including a description of the applicant's commercial activity has been enabled through the use of harmonised codes. Article 11 of Directive 2008/9/EC. 3. The refund application must be accompanied by an electronic copy of the referenced invoices or import documents when the taxable base established in each exceeds the amount of 1,000 in general or 250 in the case of fuel. Article 10 of Directive 2008/9/EC. 4. The form shall be completed in Spanish and any additional information requested by the competent body for processing and resolution thereof shall be provided in Spanish.

2 Electronic filing requirements: the conditions for filing these refund applications shall be those established by the applicant's country of residence, regardless of whether the application is filed directly by the applicant or by a third party. Refund application procedure: 1. upon receipt of the refund application from the taxpayer's country of residence, the Spanish Tax Agency shall notify the applicant or, if applicable, the filing party, of the date of receipt of the application by means of an message. The refund application shall maintain the same file number assigned by the country of residence when it was filed 2. The Spanish Tax Agency will verify the filing party's capacity to file the application only in those cases in which said filing party requests direct payment of the applicant's refund amount. The documentation that will be requested in this case is the following:.original power of attorney granted before a Notary Public in which the grantor's capacity to act on behalf and in representation of the represented entity is expressly stated, in addition to authorisation for collecting the applicant's refunds..said power of attorney must be fully worded in Spanish or translated by a sworn translator..if the Notary Public is not Spanish, the power of attorney must carry the Hague Apostille; in the event that the Notary's country of residence has not subscribed to the Hague Convention, it must be duly legalised. Additionally any other requirements shall be made as deemed necessary to deal with the refund application. Said requirements shall be notified to the applicant by . In the event that the applicant has acted through a filing party, the notifications shall be sent to the latter. 3. Notification of refund approval or rejection agreement shall be sent, depending on the circumstances, directly by the Spanish Tax Agency or with the collaboration of the applicant's country of residence. How and where can I apply for the refund of VAT paid within the territory of a Member State other than Spain by Business Persons or Professionals residing in the tax's application territory? Electronic filing requirements: The application shall be electronically filed via the Spanish Tax Agency's website -which in this case represents Spain as a Member State of Residence- which shall send the application by the same means to the Member State of Refund (that in which the tax was charged). a) If the application is electronically filed directly by the applicant, the following conditions must be fulfilled:

3 2. Applicants must have an electronic X.509.V3 certificate issued by the Spanish Royal Mint or any other electronic certificate accepted by the Spanish Tax Agency installed in their browser. 3. In order to electronically file the refund application, applicants must complete and send the data on the form available on the Spanish Tax Agency's website. b) If the application is electronically filed by a third party or organisation, the filing party must fulfil the following conditions: 2. The party or organisation must have an electronic X.509.V3 certificate issued by the Spanish Royal Mint or any other electronic certificate accepted by the Spanish Tax Agency installed in their browser. 3. The party or organisation must belong to a Society or Professional Association that has an Agreement signed with the Spanish Tax Agency that allows electronic filing of applications on behalf of third parties and they will have to sign a personalised document of adhesion to said Agreement. In the case of individual who are professionals, the procedure may be carried out via the Spanish Tax Agency's website under the option Registration in the census of corporate collaborators. In the case of incorporated entities, these must be registered in the census of corporate collaborators in the Spanish Tax Office or Agency in which the company has registered its tax address. 4. In order to electronically file the refund application, the filing party must complete and send the data on the form available on the Spanish Tax Agency's website. Other Spanish Tax Agency responsibilities: The Spanish Tax Agency shall notify 1. The correct receipt of the application, sending the applicant an electronic acknowledgement of receipt and assigning a file number to the refund application. 2. The inappropriateness of sending the application to the Member State in which the VAT was paid, due to any of the following circumstances during the referenced period: Applicant did not have the status of business person or professionals acting as such. Applicant only carried out transactions that are not eligible for full tax deductions. Applicant carries out activities taxable under the special agriculture, livestock breeding and fishing systems or the equivalence surcharge system. Said notification shall be sent to the applicant by . The applicant may lodge an appeal for reconsideration before the Spanish Tax Agency against its decision not to send the refund application to the Member State of Refund due to nonfulfilment of any of the requirements in this section. 3. Finally, the Spanish Tax Agency shall inform of any other communication that the Member State of Refund may send via the Spanish Tax Agency.

4 Said communications shall be sent to the applicant by . Therefore, the applicant must have subscribed to the Safe Electronic Notifications Service. Consult the information available on the Spanish Tax Agency's website relative to subscription to the Safe Electronic Notifications Service. 4. For any other cases not envisaged in the preceding sections, direct relations shall be established between the applicant or filing party and the Member State of Refund. How and where can I apply for the refund of VAT paid within the Spanish tax's geographical scope of application by Business Persons or Professionals residing in the Canary Islands, Ceuta and Melilla? Preferences: Filing shall be carried out electronically via the Internet, using the form provided for such purpose on the Spanish Tax Agency's website. In relation to these refund applications: 1. The coding referred to in Article 9.2 of Directive 2008/9/EC for providing additional coded information relative to the codes established in Article 9.1 of said Directive, will not be used to designate the nature of the goods and services acquired. 2. The possibility of including a description of the applicant's commercial activity has been enabled through the use of harmonised codes. Article 11 of Directive 2008/9/EC. 3. The refund application must be accompanied by an electronic copy of the referenced invoices or import documents when the taxable base established in each exceeds the amount of 1,000 in general or 250 in the case of fuel. Article 10 of Directive 2008/9/EC. Electronic filing requirements: a) If the application is electronically filed directly by the applicant, the following conditions must be fulfilled: 2. Applicants must have an electronic X.509.V3 certificate issued by the Spanish Royal Mint or any other electronic certificate accepted by the Spanish Tax Agency installed in their browser. 3. In order to electronically file the refund application, applicants must complete and send the data on the form available on the Spanish Tax Agency's website. b) If the application is electronically filed by a third party or organisation, the filing party must fulfil the following conditions:

5 2. The party or organisation must have an electronic X.509.V3 certificate issued by the Spanish Royal Mint or any other electronic certificate accepted by the Spanish Tax Agency installed in their browser. 3. The party or organisation must belong to a Society or Professional Association that has an Agreement signed with the Spanish Tax Agency that allows electronic filing of applications on behalf of third parties and they will have to sign a personalised document of adhesion to said Agreement. In the case of individual who are professionals, the procedure may be carried out via the Spanish Tax Agency's website under the option Registration in the census of corporate collaborators. In the case of incorporated entities, these must be registered in the census of corporate collaborators in the Spanish Tax Office or Agency in which the company has registered its tax address. 4. In order to electronically file the refund application, the filing party must complete and send the data on the form available on the Spanish Tax Agency's website. Refund application procedure: 1. The Spanish Tax Agency shall confirm correct receipt of the application, sending the applicant or, as the case may be, the filing party, an electronic acknowledgement of receipt, in addition to the file number assigned. 2. The Spanish Tax Agency will verify the filing party's capacity to file the application only in those cases in which said filing party requests direct payment of the applicant's refund amount. The documentation that will be requested in this case is the following:.original power of attorney shall be provided, granted before a Notary Public in which the grantor's capacity to act on behalf and in representation of the represented entity is expressly stated, in addition to authorisation for collecting the applicant's refunds. Said power of attorney must be fully worded in Spanish or translated by a sworn translator..if the Notary Public is not Spanish, the power of attorney must carry the Hague Apostille; in the event that the Notary's country of residence has not subscribed to the Hague Convention, it must be duly legalised. 3. Additionally any other requirements shall be made as deemed necessary to deal with the refund application. 4. All Spanish Tax Agency notifications shall be sent electronically. Therefore, the applicant must have subscribed to the Safe Electronic Notifications Service. Consult the information available on the Spanish Tax Agency's website relative to subscription to the Safe Electronic Notifications Service.

6 How and where can I apply for the refund of VAT paid within the territory of a Member State other than Spain by Business Persons or Professionals residing in the Canary Islands, Ceuta and Melilla? These refund applications are included under the procedure established in Directive 86/560/EEC, of 17 November 1986, by the European Communities Council. Therefore, the refund applications shall continue to be filed directly in the Member State of Refund under the conditions established by each country How and where can I apply for the refund of VAT paid within the Spanish tax's geographical scope of application by Business Persons or Residing in other countries in which the existence of reciprocity has been acknowledged? These refund applications are included under the procedure established in Directive 86/560/EEC, of 17 November 1986, by the European Communities Council. - Bill: Article 119.bis. - Rules of Procedure: Article 31.bis. Therefore, refund applications for VAT paid in Spain shall continue to be filed directly in the Member State of Refund in this case, Spain -. As of 1 January 2010, applications will have to be filed electronically in all cases. It is a prior mandatory requirement that applicants designate a representative established within the territory where the tax applies, who shall fulfil the corresponding formal or procedural obligations and shall be jointly and severally liable in cases of undue refunds. Said representative shall be responsible for electronically filing the refund application. When will the new procedure established in 2008/9/EC enter into effect? As of 1 January 2010, all refund applications referring to the three cases listed below shall be filed and processed following the new procedure: - Refund applications for VAT paid within the Spanish tax's geographical scope of application by Business Persons or Professionals residing in another Member State. -Refund applications for VAT paid within the territory of a Member State other than Spain by Business Persons or Professionals residing within the Spanish tax's geographical scope of application. - Refund applications for VAT paid within the Spanish tax's geographical scope of application by Business Persons or Professionals residing in the Canary Islands, Ceuta and Melilla. The refund applications filed prior to this date shall be processed in accordance with the procedure established in Council Directive 79/1072/EEC, of 6 December To which period can the refund application refer? The refund application may comprise the taxable amounts charged during a calendar quarter or over a calendar year. It may also refer to a period shorter than a quarter in the case of a series of transactions carried out in a calendar year.

7 Upon filing a refund application referring to a specific period, any invoices not included therein shall be included in a separate annual application. Is there a minimum refund application amount? The total amount of tax in the refund application may not be less than 400 (in the case of quarterly applications) or 50 (in the case of annual applications). What is the deadline for filing my refund application? The period for filing the refund application starts on the day following the end of a calendar quarter or calendar year, as the case may be, and ends on 30 September of the year following the calendar year in which the referenced tax amounts were charged. Forms of payment The refund shall be obtained by means of bank transfer to a financial institution established in any Member State. The following bank account details must be provided: *Name of the Bank Account holder, I.B.A.N. (International Bank Account Number) and SWIFT- BIC Code. It should be taken into account that the bank account holder must be the applicant or a filing party with a power of attorney specifically authorising them for collection of said refund