VAT in Spain. Our law firm and team of accountants at Marbella, Málaga, Spain frequently receive the question whether the transactions are subject to Spanish Value Added Tax, Transfer tax and Spanish Stamp duty or whether the transaction is exempt from taxes in Spain.
Until when may the seller request the payment of the VAT to the purchaser if by error the VAT in Spain was not charged at the time of the transaction?
The Spanish legislation defends in this case, in our opinion, the purchaser of the services or goods in the sense that the law requires the seller of the services or goods to issue the invoice within a maximum period of one months and in case VAT was not charged by error or omission, (the seller) has a maximum period of one year to charge the payment of the Value Added Tax from the purchaser.
In case the seller does not require payment within the period of one year, he looses his right to claim the purchaser to pay the VAT, without prejudice to the fact that the seller must pay the VAT to the Spanish Tax Office.
In this case, the VAT in Spain will unfortunately be an expense for the seller.
Therefore, in case the seller sends the invoice to the purchaser after more than one year, the purchaser should not be paying the VAT on the invoice. The VAT paid by the purchaser by error shall not be deducted as the deduction can only be done if payment of the VAT was demandable.
Do not hesitate to contact our accountants and fiscal advisors in Marbella at our law firm “Welex”. We are at your disposal for any issue on this most complex tax in the Spanish tax system.
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