Refund position

The situation

A taxpayer in a net refund position files a separate refund application within five years after the quarter end.

The law

• VAT Law, Royal Decree 121/2020 (refunds): Refund application within five years after the quarter end for a net refund position

What it means for you

A refund shown on the return is not paid automatically. You file a separate refund application within five years after the end of the quarter. Exporters with regular refunds often claim each quarter; expect the Tax Authority to check invoices before paying.

What to do

1. File the refund application on TMS.
2. Attach supporting invoices.
3. Answer queries.
4. Track payment.

Related

• Late VAT return fine
• Record keeping period
• VAT evasion penalty
• Nil VAT return
• VAT return due date
• Claiming input VAT