On the Obligation of Outputting VAT Within a Period of One Year
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Spanish regulations require the seller of goods or services to issue the invoice within a maximum period of one month following the transaction. The pertaining VAT must evidently be included in the invoice. In the event of failure to do so due to error or omission, the seller has up to one year to output the VAT, that is, to issue a new invoice and claim the payment of VAT from the buyer.
Should this not be done, the seller loses the right to claim payment of VAT from the buyer, notwithstanding the payment of VAT to be made to the Tax Authorities. In this case, VAT will become an expense for the seller. For this reason, in the event that the seller should send the buyer a sales invoice with a delay exceeding one year (due to seller’s mistake) indicating, for example, the item “sale of machinery on 10.1.2011” and having received the invoice in April 2012, the buyer should under no circumstance pay the VAT on the invoice, as this was accrued in January 2011 and more than one year has lapsed since that time.
Should the buyer pay the VAT by mistake, the input VAT in the invoice cannot be deducted, as VAT deduction is only possible if the payment of VAT is required; this is not the case here, as the obligation to pay VAT has lapsed (one year). For this reason, the buyer must always check the date on which the obligation to pay the VAT has accrued. And if it should be discovered that non-required VAT has been paid, the buyer may claim a refund of the input VAT from the Administration, but this will not be automatically deducted in his ordinary VAT returns. The ruling allows the payer of the invoice to claim the refund of the input VAT from the Tax Authorities, even though the regulations governing this refund state that this may be only claimed by the seller.
The Tribunal Supremo rulings dated 18.3.2009 and 9.1.2008 deal with this matter.
Javier Valls, LL.M. Abogado (Barcelona/Spain)
ABOUT THE AUTHOR: Javier Valls, LL.M. (Spanish Tax Lawyer)
Javier Valls is managing partner at Javier Valls Abogados, a boutique law firm specialized in international and Spanish tax law with office in Barcelona. He graduated in Law by the Universidad de Barcelona and is registered in the Barcelona Bar Association. After working as a tax lawyer in Barcelona, he moved to Germany, where he specialized in international and European tax law. During those years, he worked at the international tax department for one of the big four auditing companies in Stuttgart, and later in another well-known German law firm specialized in international tax.
When once again in Spain, he worked for the international tax department of the Ernst & Young in Barcelona, as well as in another law firm for some years. He is also president of the international and European law group of Barcelona's Bar Association and part-time tax professor at the Faculty of Law of the Universidad de Barcelona.
Copyright Javier Valls Abogados
More information about Javier Valls Abogados
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Should the buyer pay the VAT by mistake, the input VAT in the invoice cannot be deducted, as VAT deduction is only possible if the payment of VAT is required; this is not the case here, as the obligation to pay VAT has lapsed (one year). For this reason, the buyer must always check the date on which the obligation to pay the VAT has accrued. And if it should be discovered that non-required VAT has been paid, the buyer may claim a refund of the input VAT from the Administration, but this will not be automatically deducted in his ordinary VAT returns. The ruling allows the payer of the invoice to claim the refund of the input VAT from the Tax Authorities, even though the regulations governing this refund state that this may be only claimed by the seller.
The Tribunal Supremo rulings dated 18.3.2009 and 9.1.2008 deal with this matter.
Javier Valls, LL.M. Abogado (Barcelona/Spain)
ABOUT THE AUTHOR: Javier Valls, LL.M. (Spanish Tax Lawyer)
Javier Valls is managing partner at Javier Valls Abogados, a boutique law firm specialized in international and Spanish tax law with office in Barcelona. He graduated in Law by the Universidad de Barcelona and is registered in the Barcelona Bar Association. After working as a tax lawyer in Barcelona, he moved to Germany, where he specialized in international and European tax law. During those years, he worked at the international tax department for one of the big four auditing companies in Stuttgart, and later in another well-known German law firm specialized in international tax.
When once again in Spain, he worked for the international tax department of the Ernst & Young in Barcelona, as well as in another law firm for some years. He is also president of the international and European law group of Barcelona's Bar Association and part-time tax professor at the Faculty of Law of the Universidad de Barcelona.
Copyright Javier Valls Abogados
More information about Javier Valls Abogados
View all articles published by Javier Valls Abogados
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
