Spain: Rules for post-Brexit recovery of VAT paid in UK

Spain: Rules for post-Brexit recovery of VAT paid in UK

Claims for refunds of value added tax (VAT) paid in the United Kingdom by Spanish businesses will be affected when the Brexit transitional period ends 31 December 2020 (at which time the United Kingdom leaves the EU).

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Concerning VAT, the following rules announced by the Spanish tax agency (Agencia Estatal de Administración Tributaria—AEAT) must be taken into account, in order to recover VAT paid in the United Kingdom by Spanish entrepreneurs:

  • Entrepreneurs and other taxpayers established in Spain that acquired goods and services in the United Kingdom during the year 2020, may only request a refund of VAT from the UK until 31 March 2021. These refund claims must be made via the AEAT website and in accordance with the procedure applicable to the EU Member States by submitting form 360.
  • Entrepreneurs and other taxpayers established Spain that purchase goods and services in the United Kingdom during the year beginning 1 January 2021 and then seek a refund of input VAT will no longer be able to submit their request electronically through the AEAT website but will have to submit their refund claims to the UK tax administration and in accordance with the UK rules.

Read a December 2020 report (Spanish) [PDF 182 KB] or (English) [PDF 168 KB] prepared by the KPMG member firm in Spain

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