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.
Intra-Community triangular operations (ITO) are performed among three companies located in three different countries. Thus, Company B (intermediary, Country 2) purchases goods from Company A (supplier, Country 1), to be in turn resold to Company C (final customer, Country 3), so that the product will be transported directly from the country of the supplier to that of the final customer, without entering the country of Company B.
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.
Tax debts in Spain undergoing a voluntary or enforceable payment period may be deferred or paid by instalments, after having submitted the taxpayer’s application, if a business’ financial position prevents it from making payments within the terms required by the Revenue Office.
The deductibility of subsistence allowances and travel expenses in Spain entails important savings for companies or self-employed workers. However, this requires compliance of a series of conditions and document requirements that need to be taken into account, which we describe in this article. We shall explain all the aspects pertaining to subsistence allowances and transportation costs, food and board, according to the two most relevant taxes for companies in Spain, Corporate Tax and Value-Added Tax.