Attending trade fairs, exhibitions or business meetings in Spain is very common for international companies. These activities generate costs such as event fees, hotels and restaurants, all of which include Spanish VAT.
Many non-European companies assume this VAT is a cost. In practice, this is not correct. If the expenses are linked to business activity and properly managed, the VAT is recoverable.
At VAT & Green Tax, we regularly work with international companies that have incurred VAT in Spain and we assistem them recover amounts that were initially treated as a cost.
Recovering Spanish VAT on events, hotels and restaurants
When a company is neither VAT established nor VAT registred, it cannot recover VAT through a standard VAT return. Instead, it must use a specific refund procedure for non-established businesses.
We explain this in more detail in our article on Spanish VAT refunds for non-established businesses.
From a technical perspective:
- EU companies apply under Article 119 of the Spanish VAT Act.
- Non-EU companies apply under Article 119 bis.
This article focuses on non-EU companies, where the process is slightly more complex but still allows VAT recovery.
Why events, hotels and restaurants include Spanish VAT.
The VAT treatment follows place-of-supply rules. Certain services are always taxed where they physically take place:
- Access to fairs, exhibitions and conferences.
- Hotel accommodation.
- Restaurant and catering services.
This means that when a non-EU company attends an event in Spain, Spanish VAT will always be charged. This is correct from a VAT perspective.
The next step is recovering it through the proper procedure.
How Spanish VAT refunds work for non-EU companies.
Article 119 bis Spanish VAT Act
Non-European companies must apply directly to the Spanish Tax Authorities using Form 361.
There are several key elements:
- A Spanish tax representative may be required.
- The application must include complete and accurate documentation.
- The Spanish Tax Authorities may issue requests for additional information.
One important concept is reciprocity. In general, Spain requires that the applicant’s country grants similar VAT refunds to Spanish companies.
Exception for events, hotels and related expenses.
Expenses linked to trade fairs, exhibitions, conferences, hotels and restaurants can be refunded even if reciprocity does not apply.
In practice, this means that many international companies attending events in Spain can recover VAT even if they believe they do not meet the general reciprocity condition.
What expenses can be recovered.
The most common recoverable expenses include:
- Trade fair and exhibition access fees.
- Stand rental and event participation costs.
- Hotel accommodation during business trips.
- Restaurant expenses linked to business meetings.
- Transport connected to the event.
The key requirement is that the expenses are linked to the business activity and supported by valid invoices.
Deadline to recover Spanish VAT.
The deadline is strict and should not be overlooked. VAT incurred in Spain must be claimed by 30 September of the following year.
This is a limitation period. If the deadline is missed, the right to recover the VAT is lost.
Requests from the Spanish Tax Authorities.
Once the application is submitted, the Spanish Tax Authorities will review it. In many cases, they issue requests for additional information. This is a normal part of the process.
These requests must be answered:
- Within the deadline.
- With clear and consistent information.
- With proper supporting documentation.
Failure to respond correctly is one of the main reasons for rejection.
Common mistakes in VAT refund applications.
From our experience, the most common issues are:
- Incorrect procedure to recover Input VAT.
- Not identifying recoverable VAT.
- Missing the deadline.
- Submitting incomplete applications.
- Not responding to tax authority requests.
In many cases, the VAT is recoverable, but the process is not handled correctly.
How VAT & Green Tax supports non-EU businesses recovering Input VAT.
At VAT & Green Tax, we assist international companies throughout the entire VAT recovery process in Spain.
Our services include:
- Reviewing expenses and identifying recoverable VAT.
- Preparing and submitting refund applications.
- Acting as the Spanish VAT representantive.
- Managing communications with the Spanish Tax Authorities.
- Responding to requests and notifications and appeals.
We also support companies that have already received a notification and need to respond correctly.
Our objective is clear: if the VAT is recoverable, we make sure it is recovered.
FAQs – Spanish VAT refund for non-EU companies
Can non-EU companies recover Spanish VAT
Yes, under Article 119 bis of the Spanish VAT Act, provided that there is a reciprocity agreement between Spain and the country where the company is established, as is the case for example with Switzerland.
However, there are important exceptions. VAT incurred on tooling, access to events, and related expenses such as hotels and restaurants may still be recoverable even in the absence of reciprocity, provided the general requirements are met.
Can Swiss or UK companies recover Spanish VAT
Yes, Swiss or UK companies are a common example of non-EU businesses that can recover VAT, especially for event-related expenses.
Is reciprocity always required
No, there are exceptions for toolings fairs, events, hotels and restaurants.
What happens if I receive a request from the Spanish Tax Authorities
You must respond within the deadline, otherwise the refund will be rejected.
What is the deadline to recover VAT
30 September of the following year
If you have Spanish Input VAT, you can contact us at our e-mail hola@vatgreentax.com and we will review your situation.
