Can a sole trader claim VAT back?

When a tax refund is due

The taxable events subject to VAT are: the supply of goods and services, intra-Community acquisitions of goods and imports of goods.

In order for the taxable event carried out by businessmen and professionals in the development of their activity to be subject to VAT, it must be carried out in the territory of application, which is the peninsula and the Balearic Islands; it does not apply in the Canary Islands, Ceuta and Melilla. The Canary Islands is the territory of application of the Canary Islands General Indirect Tax (IGIC). In the autonomous cities of Ceuta and Melilla, the Tax on Production, Services and Imports (IPSI) is applied.

All taxpayers obliged to file periodic tax returns are obliged to file an annual summary return, except for filers under the electronic services regime and taxpayers included in the Immediate Information Supply (SII) system.

Taxpayers included in the Immediate Information Supply (SII) system will be able to file and pay their periodic VAT self-assessments ten days later. In addition, they will not have to file the annual summary return.

Electronic VAT refund document

VAT refunds to non-established personsFrequently asked questions on the application for refund of input VAT in a State other than that of establishment (VAT Refund)Skip to information indexApplications from entrepreneurs outside the European UnionThese refund applications fall within the procedure established in Directive 86/560/EEC of 17 November 1986 of the Council of the European Communities.

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As a general rule, applicants are required to appoint a representative who is resident in the territory where the tax applies and who will have to comply with the corresponding formal or procedural obligations and who will be jointly and severally liable with them in the event of an unjustified refund. This representative will be the one who will have to make the telematic presentation of the refund request.

Prior to the presentation, the following documents must be sent to the National Tax Management Office (Paseo de la Castellana, nº 147, bajo, CP: 28046 MADRID), by registered mail:

VAT refund europa

The presentation of the new form 303 of self-assessment will be obligatory by telematic means through Internet for those taxpayers whose liquidation period coincides with the calendar month. In the case of taxpayers whose liquidation period coincides with the calendar quarter, the filing by telematic means through the Internet will be optional, except for the entities that have the legal form of a corporation or limited liability company that will have to file it obligatorily by telematic means through the Internet.

Article 117 of the General Regulations of the actions and procedures for tax management and inspection and for the development of the common rules of the procedures for the application of taxes, empowers, within the scope of the State, the Minister of Economy and Finance to approve the forms of return, self-assessment and communication of data, as well as to establish the form, place and deadlines for their presentation.

c) Those who pay taxes under the special regime of the equivalence surcharge, who have made refunds to exporters under the travelers’ regime referred to in Article 117 of the aforementioned Law 37/1992, and who request the reimbursement of the amount of the quotas that have been refunded.

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IRS Form 360

You must attach in *.zip format file in digitalized form the withholding receipts with signature and seal of the issuer in which the ISR withholdings are recorded; supporting documentation of tax paid abroad; among others.

Withholding certificates, tax receipts of tax credits withheld or paid, payment receipts, etc., of the controlled and controlling companies, in the case of credited income tax.

Free writing in which it is stated “under oath to tell the truth” the reason for which it did not declare the amount in the table corresponding to the IMPAC in the tax return of the fiscal year in question, being obligated to do so.

Free writing in which it declares “under oath”, clarifications regarding the compensations applied by the taxpayer, because there are differences against the amount determined by the authority.

Proof of withholdings, tax receipts of creditable tax withheld or paid, payment receipts, etc., of the controlled and controlling companies; in the case of credited income tax.

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