claim VAT back on tolls in Spain

Tolls and road charges fall under business travel expenses

VAT on tolls and road charges paid in Spain for a business trip normally qualifies for inclusion in a request for refund of foreign VAT. Tolls and road taxes are among the cost categories that the European refund regulation distinguishes for expenditure incurred by an entrepreneur abroad, alongside for example fuel, accommodation and trade fair participation. When driving in Spain and using tolled roads, you pay Spanish VAT on the toll amount, and that VAT cannot be offset against your Dutch VAT return — hence the route through a refund request to the Spanish tax authority.

Whether Spain actually grants full VAT refund on tolls depends on the conditions that Spain itself sets for this cost category. Not every EU country treats each cost category in the same way: some countries exclude certain categories or impose additional requirements for substantiation, for instance regarding the type of receipt or the link to a specific vehicle or journey. For tolls in Spain, this means that the outcome of a request is only established at the moment the Spanish tax authority assesses it, and that an upfront indication always remains an estimate.

What this is based on

The cost categories eligible for refund are governed by Council Directive 2008/9/EC, which provides the framework for VAT refunds to entrepreneurs not established in the refund country. Which specific restrictions or additional conditions Spain applies to tolls and road charges is set out in the Requirements List of the Tax Authority per refund country, which lists per EU country what is and is not accepted and what supporting documents are required. For a broader overview of how Member States apply VAT rules to this type of expense, the Taxes in Europe Database of the European Commission can also be consulted.