If you’ve recently visited Spain from a non-EU country, like the UK, you may be entitled to claim back the VAT (Value Added Tax) on purchases you made during your trip. This guide will walk you through how the VAT refund process works and how to get your money back.
What is VAT and Who Can Claim It?
VAT, or Impuesto sobre el Valor Añadido (IVA) in Spain, is a tax included in the price of most goods and services. As a non-EU resident, when you shop in Spain and bring goods back to your home country, you may be eligible to reclaim the VAT on those purchases.
You can claim a VAT refund if:
- You live outside the European Union.
- You’ve made purchases from shops that participate in the VAT refund system.
- The goods are taken out of the EU within three months of purchase.
- The items are for personal use and are unused upon departure.
How Does the VAT Refund Process Work?
Here’s a step-by-step breakdown of how to claim your VAT refund when departing Spain:
1. Shop at VAT-Registered Stores: To be eligible for a VAT refund, you must shop at stores that participate in the VAT refund scheme. Look for shops with “Tax-Free Shopping” signs, or ask the shop if they offer VAT refunds. When making a purchase, request a Tax-Free form or VAT refund form.
2. Keep Your Receipts and Complete the Forms: Ensure that you keep all your receipts and fill out the required Tax-Free forms when you make your purchases. You’ll need this documentation to process your refund.
3. Validate Your VAT Refund Forms at Customs: Before you leave Spain or the EU, you must get your VAT refund forms stamped by Customs. You will find the VAT Refund Desk or Customs office at the airport or border crossing.
- Show the purchased goods, your passport, the VAT forms, and receipts.
- Make sure the goods are unused and ready to be checked by customs officers if needed.
4. Submit Your Refund: Once your VAT refund forms are stamped by Customs, you have a couple of options:
- Immediate Cash Refund: Some airports have VAT refund operators (such as Global Blue or Planet) that will provide an instant cash refund, minus any service fees, once your forms are stamped.
- Credit Card Refund: You can also submit the VAT forms by post or online (depending on the refund provider) to have the refund transferred to your credit card.
Key Considerations
- Minimum Purchase Amount: In Spain, there’s a minimum spending threshold to qualify for a VAT refund. As of 2024, this amount is €90.15 per store, on the same day.
- Time Frame: You must take the goods out of Spain and the EU within three months of purchasing them to qualify for a refund.
- Goods Eligibility: VAT refunds are typically available on physical goods (like clothes, electronics, and jewelry) that you’ll take home, but not on services like hotel stays, meals, or car rentals.
Example:
Let’s say you are visiting Spain from the UK, and you purchase a camera for €1,000. This price includes 21% VAT, which amounts to €210. If you follow the refund process, you could get back most of that €210 VAT once you leave Spain.
Contact Us for Assistance
If you have any questions about how VAT refunds work, Salvador Tax & Legal can assist you with any tax-related inquiries. We ensure that you understand all the details of your travel purchases and help make the refund process as smooth as possible.
By being informed and following the proper steps, you can recover the VAT on your purchases and enjoy the savings!
