Form 720 in Spain – Informative Return on Assets and Rights Held Abroad – is a fiscal obligation of an informative nature that requires figures and data on financial assets and rights held or managed abroad to be declared. Natural persons and entities domiciled in the Spanish state are obliged to submit this information return.
As businesses become international, it is more and more common to pay VAT on expenses incurred outside Spain. In this context, it is interesting to get to know how you can obtain a refund of such VAT (cross-border VAT recovery).
The refund of VAT incurred in the country of origin (cross-border VAT recovery in Spain) is a highly interesting advantage and yet quite unknown to most businesses.
Form 231 (Country by Country Declaration in Spain) includes the international transactions carried out between companies of the same group, provided certain requirements are satisfied. The term within which to file said form concludes twelve months after the end of the fiscal year of the group’s companies.
Decision V0066-18 dated 17 January 2018 sets forth that a server located in Spain may constitute a permanent establishment in Spain for the purposes of Corporate Tax.