In this article, we explain when you must manage a VAT refund if a customer with a valid intra-Community VAT number requests the corresponding VAT exemption.
- When the VAT refund applies
- What you must check
- What you must do as a seller
- Summary
The VAT refund for an intra-Community VAT number must be managed when the customer proves that the transaction meets the requirements to apply the VAT exemption for intra-Community supplies.
This obligation is based on Article 25 of Spanish VAT Law 37/1992, which regulates exemptions for supplies of goods sent to another Member State.
You can check the legal text at the following link: Article 25 of Spanish VAT Law 37/1992
Before managing the VAT refund, you must check that the customer has provided a valid intra-Community VAT number and that the transaction meets the applicable requirements.
- Verify that the intra-Community VAT number provided by the customer is valid.
- Check that the transaction corresponds to an intra-Community supply of goods.
- Keep the documentation proving the validity of the intra-Community VAT number and the transaction carried out.
If a customer with a valid intra-Community VAT number requests a VAT refund and the legal conditions are met, you must manage the corresponding refund.
- Review the documentation provided by the customer.
- Check the validity of the intra-Community VAT number.
- Issue the invoice or corrective invoice required according to the status of the transaction.
- Refund the VAT amount charged, where applicable.
- Keep the supporting documentation for the transaction.
- If the customer proves a valid intra-Community VAT number: you must check whether the transaction can benefit from the VAT exemption.
- If the legal requirements are met: you must manage the VAT refund when requested by the customer.
- If the customer does not provide valid proof: you must not apply the refund.
- In all cases: keep the supporting documentation.