- VAT refund is possible on expenses paid in Spain
- Spanish VAT authorities allow for the full VAT to be claimed back
- Certain goods and services are excluded or have reduced VAT recovery
- Expenses such as entertainment, food and drinks, and gifts have 0% VAT recovery
- Vehicles costs have a 50% VAT recoverable rate
- Travel expenses, accommodation, and restaurant services have 0% recoverable VAT unless deductible for direct income tax purposes
- VAT refund can be requested once a year in the last VAT return of the civil year
- It is important to follow the rules and principles of the VAT game to ensure successful VAT recovery.
Source: vatdesk.eu
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
