If you have recently traveled to Madrid and made purchases, you may be eligible to claim back the Value Added Tax (VAT) on those purchases. VAT is a tax that is added to the price of goods and services in many countries around the world, including Spain. It can be a significant amount, so it’s worth knowing how to claim it back.
What is VAT?
VAT is a tax that applies to most goods and services in Spain. The standard rate of VAT in Spain is currently 21%, although there are reduced rates of 10% and 4% for certain items such as food, books, and medicine.
Who can claim VAT back?
If you are a non-resident of the European Union (EU) and have made purchases in Madrid, you may be eligible to claim back the VAT on those purchases. This includes tourists who are visiting Madrid for leisure or business purposes.
- To be eligible for a VAT refund, you must have spent a minimum of €90.15 in one store on one day.
- You must also have proof of purchase in the form of a valid invoice or receipt.
- The items must not be used or consumed in Spain before leaving the country.
How to claim VAT back
There are several ways to claim back VAT in Madrid:
1. Refund at the airport
Most international airports in Spain have VAT refund offices where you can get your refund before departing from Spain. To do this, follow these steps:
- Before checking your baggage, go to the customs office with your invoice(s) and passport.
- The customs officer will verify your documents and stamp them.
- After passing through security control, go to one of the authorized agencies located inside the airport terminal to receive your refund in cash or credit card.
2. Refund by mail
If you are unable to get a refund at the airport, you can also claim your VAT back by mail. To do this, follow these steps:
- Request a VAT refund form (modelo 790) from the store where you made your purchase.
- Fill out the form and include it with your original invoice(s) and passport copies.
- Mail the documents to the address indicated on the form.
- You will receive your refund via bank transfer or credit card within a few weeks.
3. Refund through an agency
There are several agencies in Spain that offer VAT refund services. These agencies charge a fee for their services, but they can be convenient if you want to avoid the hassle of dealing with paperwork yourself. To use this service, follow these steps:
- Bring your invoice(s) and passport to one of the authorized agencies in Madrid.
- The agency will verify your documents and process your refund for a fee.
Conclusion
Claiming back VAT in Madrid can be a simple process if you know what steps to take. Whether you choose to get your refund at the airport, by mail, or through an agency, make sure you have all the necessary documentation and meet the eligibility criteria. With a little effort, you could save yourself some money on your next trip to Madrid.