Spain

Spain – To Allow VAT Refunds To A Foreign Bank

SPAIN ALLOWS VAT REFUNDS INTO FOREIGN BANK ACCOUNTS

The Spanish government has now made it possible to receive Spanish VAT refunds into a foreign bank account. This will be particularly useful for those companies that have a Spanish VAT registration number (ES VAT) but no physical location in Spain.

Previously, VAT registered companies had to have a bank account set up under a bank registered in Spanish  to receive a refund.

It does appear that only the SEPA format can be used so any country that is using SEPA will be able to take advantage of this new change. SEPA (Single European Payments Area) covers all EU countries, Norway, Iceland, Liechtenstein and Switzerland (there are a few exclusions like overseas territories).

The original article was from Marosa and you can read more about VAT refunds in our article EU VAT Refunds. Recover VAT through your VAT return or separate refund claims?.

IMF call on Spain to raise their VAT rate

IMF call on Spain to raise VAT

The International Money Fund has called on Spain to raise its VAT rate, even though they said they are pleased with the progress that Spain has made so far it still needs to see more improvements especially on the high levels of unemployment, currently at 24%.

Spain’s economy is gaining momentum and is expected to grow by 3.1% this year however they still need more revenue to boost their economy and the IMF believe they can best do this by raising their VAT rate. In addition they also say other reforms were needed, such as an overhaul of employment contracts and the introduction of healthcare co-payments.

So far the Spanish Government says it had no plans to raise the VAT rate, but it is something that could be a possibility in the near future if they are to listen to the IMF.

Canary Islands VAT rates IGIC

Canary Islands – VAT Rates Increase

2 July 2012 | Posted in: Canary Islands, VAT | Posted by: +

The Canary Islands has announced increases in the rates of  IGIC (the general indirect tax in the Canary islands) with effect from 1st July 2012.
The changes are:

  • The reduced rate of 2% on the sale of certain houses is increased to 2.75% from 1st July to 31st December 2012 and to 3% from 1st January 2013.
  • The general rate is increased from 5% to 7%.
  • The increased rate of 9% will be raised to 9.5% and the increased rate of 13% is to be raised to 13.5%.

The zero rate and the super increased rate of 20% rate are unchanged.