US, Chinese and other non-EU companies may recover Spanish VAT even without reciprocity agreement.
Every year, thousands of international companies attend trade fairs, congresses and professional exhibitions held in Spain. Many of them assume that the Spanish VAT charged on hotels, restaurants, transport and event admission fees represents a definitive cost.
This is particularly common among companies established in countries that do not have a VAT reciprocity agreement with Spain.
However, this assumption is not always correct.
At VAT & Green Tax, we assist non-European businesses with the recovery of Spanish VAT. Spanish VAT legislation includes a specific exception that may allow companies to obtain a refund even when their country of establishment does not have a reciprocity agreement with Spain.
This opportunity can be particularly relevant for companies from the United States, China, Hong Kong, the United Arab Emirates, India and other non-EU jurisdictions attending commercial events in Spain.
Can a non-EU company recover Spanish VAT?
The general rule is established in Article 119 bis of the Spanish VAT Law.
Companies established outside the European Union may generally recover Spanish VAT only when Spain has recognised reciprocity with their country of establishment, for example, Swiss entities can recover Spanish VAT.
Under this general framework, businesses established in certain jurisdictions may recover Spanish VAT subject to the applicable requirements and limitations.
By contrast, companies established in countries such as:
- The United States.
- China.
- Hong Kong.
- The United Arab Emirates.
- India.
- Singapore.
- Australia.
- Brazil.
- Mexico.
May not normally be entitled to recover Spanish VAT under the general reciprocity rule.
Nevertheless, Spanish VAT law provides an important exception for certain costs connected with trade fairs, congresses and professional exhibitions.
Spanish VAT refund without reciprocity for trade fairs and congresses.
Article 119 bis of the Spanish VAT Law expressly provides that reciprocity is not required for certain services connected with attendance at commercial or professional trade fairs, congresses and exhibitions held in Spain.
This means that a US or Chinese company may potentially recover Spanish VAT even though its country does not have a general reciprocity agreement with Spain.
The relevant expenses must be directly linked to attendance at a qualifying commercial or professional event.
This exception is often overlooked by international finance departments. As a result, many companies treat recoverable Spanish VAT as a final business cost.
Which event-related expenses may qualify for a Spanish VAT refund?
The exception applies to specific categories of services linked to attendance at the event.
These may include:
- Admission and access fees.
- Hotel and accommodation services.
- Restaurant and catering services.
- Transport services connected with attendance at the event.
The connection between each expense and the commercial or professional event must be properly evidenced.
Not every cost incurred during a business trip to Spain will automatically qualify. The documentation should clearly demonstrate that the services were linked to participation in the relevant fair, congress or exhibition.
Practical example: a US company attending Mobile World Congress.
A technology company established in the United States attends Mobile World Congress in Barcelona.
Its employees incur Spanish VAT on:
- Hotel accommodation.
- Restaurant expenses.
- Local transport.
- Congress admission passes.
The United States does not have a general VAT reciprocity arrangement with Spain.
However, the company may still be entitled to recover the Spanish VAT charged on these expenses under the specific exception for trade fairs, congresses and professional exhibitions.
The refund must be requested through the special procedure applicable to businesses established outside the European Union.
Which non-EU companies may benefit?
The exception is not limited to one particular country.
It may be relevant for companies established in:
- The United States.
- China.
- Hong Kong.
- The United Arab Emirates.
- India.
- Singapore.
- Australia.
- South Korea.
- Brazil.
- Mexico.
- Saudi Arabia.
- Turkey.
- Other non-EU jurisdictions.
The decisive issue is not simply the company’s country of establishment.
The nature of the event, the type of expense and the direct connection between the invoice and attendance at the event must also be reviewed.
Events in Spain that may generate recoverable VAT.
Spain hosts some of Europe’s most important international business events.
Non-EU companies attending or exhibiting at events such as the following may have incurred recoverable Spanish VAT:
- Mobile World Congress Barcelona.
- Integrated Systems Europe.
- Fruit Attraction.
- FITUR.
- Alimentaria.
- Seafood Expo Global.
- Barcelona Bridal Fashion Week.
- International logistics, pharmaceutical, technology and industrial exhibitions.
- Other commercial or professional fairs held in Spain.
Each case should be assessed individually, particularly where the company has incurred substantial accommodation, catering or transport costs.
What documentation is required?
A successful Spanish VAT refund claim requires accurate and complete documentation.
The applicant will normally need to provide:
- Correctly issued invoices.
- Evidence of attendance at the trade fair or congress.
- Event registration documents or admission passes.
- Proof of the commercial or professional nature of the event.
- Corporate information relating to the applicant.
- Evidence of the company’s business activity.
- A power of attorney and the appointment of a representative in Spain, where required.
Invoices should be reviewed before the claim is submitted.
Incorrect company details, simplified receipts or missing VAT information may prevent recovery or lead to requests for additional evidence from the Spanish Tax Authorities.
Is a representative in Spain required?
Businesses established outside the European Union must appoint a representative resident in the Spanish VAT territory before submitting a refund claim under Article 119 bis.
The representative handles the formal and procedural obligations connected with the application.
Spanish VAT legislation also establishes potential joint liability for the representative where a refund has been obtained incorrectly. For this reason, the representative must conduct an appropriate review of the invoices, the applicant and the underlying transactions.
Common mistakes made by non-EU companies.
Companies frequently lose the opportunity to recover Spanish VAT because they assume that the absence of reciprocity makes every refund impossible.
Other common mistakes include:
- Using the wrong VAT refund procedure.
- Submitting ordinary expense receipts instead of complete invoices.
- Failing to prove the connection between the expenses and the event.
- Including expenses that are not covered by the legal exception.
- Missing the statutory filing deadline.
- Failing to appoint a Spanish representative.
- Providing inconsistent corporate or tax information.
- Assuming that all costs incurred during the business trip are recoverable.
A prior review can identify these problems before the application is filed.
Can exhibitors also recover Spanish VAT?
The exception specifically covers access, accommodation, restaurant and transport services linked to attendance at commercial or professional fairs, congresses and exhibitions.
Other expenses incurred by exhibitors, such as stand construction, technical services, equipment rental, advertising or event organisation costs, require a separate analysis.
They should not automatically be treated as covered by the exception.
In some circumstances, another VAT treatment or refund mechanism may apply. The company’s activities in Spain must therefore be reviewed before including these invoices in the application.
How VAT & Green Tax can help to recover Spanish VAT.
At VAT & Green Tax, we manage Spanish VAT refund claims for businesses established outside the European Union.
Our services may include:
- Initial eligibility assessment.
- Review of the company’s country of establishment.
- Analysis of the relevant event.
- Review of invoices and supporting documents.
- Identification of potentially recoverable VAT.
- Appointment as representative in Spain.
- Preparation and submission of the refund application.
- Management of requests issued by the Spanish Tax Authorities.
- Follow-up until the procedure is completed.
Before filing the application, we assess whether the expenses fall within the exception established by Article 119 bis of the Spanish VAT Law.
This preliminary analysis helps avoid claims that are incomplete, procedurally incorrect or unsupported.
Recover Spanish VAT incurred at events in Spain
A company established outside the European Union should not automatically treat Spanish VAT as an irrecoverable cost.
US, Chinese and other non-EU businesses may be entitled to recover VAT charged on admission, accommodation, restaurant and transport services connected with commercial or professional trade fairs, congresses and exhibitions held in Spain.
If your company has attended an event in Spain, our team can review the invoices, confirm whether the legal exception applies and manage the refund procedure from beginning to end.
Contact VAT & Green Tax to assess your Spanish VAT refund opportunity through our e-mail hola@vatgreentax.com
Frequently asked questions
Can a US company recover Spanish VAT from a trade fair?
Yes. A US company may potentially recover Spanish VAT on qualifying admission, accommodation, restaurant and transport expenses directly linked to a commercial or professional trade fair, congress or exhibition held in Spain.
The absence of a general reciprocity agreement with the United States does not prevent the application of this specific exception.
Can a Chinese company apply for a Spanish VAT refund?
Yes. A Chinese company may be entitled to recover Spanish VAT when the expenses fall within the exception for qualifying commercial or professional events.
The invoices and the relationship between the expenses and the event must be properly documented.
Which Spanish VAT expenses are covered by the exception?
The legislation specifically refers to:
- Access services.
- Hotel and accommodation services.
- Restaurant services.
- Transport services.
These services must be connected with attendance at a commercial or professional fair, congress or exhibition held in Spain.
Can VAT on exhibition stand costs be recovered?
Not automatically under the event exception.
Stand construction, equipment rental, advertising and technical services require a separate VAT analysis. Their recoverability will depend on the nature of the service and the company’s activities in Spain.
Does the company need a Spanish VAT number?
Not necessarily.
A foreign company may submit a refund claim without being registered for Spanish VAT, provided it meets the conditions of the special refund procedure and has not carried out transactions that require Spanish VAT registration.
Is a fiscal representative required in Spain?
Companies established outside the European Union must generally appoint a representative resident in Spain for the purposes of the Article 119 bis refund procedure.
Can hotel invoices issued in an employee’s name be recovered?
This can create difficulties.
Ideally, invoices should be issued in the full legal name of the applicant company and include the appropriate corporate and tax information. Invoices issued only to an employee may be rejected or require additional evidence.
What is the deadline for submitting the claim?
The filing deadline is 30th September of the next year of the Input VAT.
Companies should review the invoices as soon as possible after the event to ensure that the claim is prepared and submitted within the statutory deadline.
