Spain: Indirect taxation reformed by Decree

A Royal Decree modifying the regulations on indirect taxes has just been published in Spain (RD 1075/2017). Specifically, the VAT Return to Travellers Scheme will be modified (retail sales for non-residents). Among other issues, VAT processing will be imposed through an electronic reimbursement system (as already announced in a previous Royal Decree 596/2016). However, until January 1 2019, when electronic processing becomes mandatory, a paper invoice issued by the supplier can also be used.

Author: Teresa Bové, HLB Spain, Partner at Bove Montero Y Asociados