claim VAT back on hotels in Spain

VAT on a hotel accommodation in Spain is reclaimable

VAT that a Dutch entrepreneur pays for a hotel accommodation in Spain is in principle covered by the refund scheme under Directive 2008/9. Accommodation is one of the cost categories that the scheme distinguishes, alongside for example fuel, tolls and trade fair participation. The condition is that the accommodation has a business purpose and that the business is established in the Netherlands and is not VAT-exempt there — the latter is what the Dutch Tax Administration checks before forwarding a request to Spain.

Whether and to what extent the Spanish tax authority actually grants that VAT depends on what Spain itself allows for this cost category. Member States may namely exclude or limit certain expenses within the scheme, and this varies per Member State. For accommodation, this in practice often comes down to additional requirements for the invoice — a valid VAT number of the hotel, a correct statement of the VAT amount and sometimes substantiation of the business purpose of the stay. Without an invoice that meets these requirements, a request risks being rejected, even if the accommodation was clearly business-related.

Where this follows from: Directive 2008/9 and the Requirements list per country

The right to reclaim foreign VAT is set out in Directive 2008/9/EC, which regulates the procedure and the cost categories for the refund. The specific requirements and restrictions that Spain applies on top of this for accommodation costs are set out in the Requirements list that the Tax Administration publishes per refund country. That list indicates per country which cost categories are accepted and which additional invoice requirements apply, and is therefore the source to consult before a request for Spain is submitted.