The case was complicated by the fact that the transaction would have been considered TOMS scheme under the Spanish laws for the agency supplying travel services to a third party. Under TOMS all input and output VAT is unrecoverable.
MICE VAT designed an elegant legal solution and helped the client to restructure the transaction in due time, so that they could secure VAT refund on Accommodation and other supplies, leveraging on specific Spanish laws.
The Italian company previously tried to recover VAT from this event through an international tax recovery firm, but the refund application was rejected on the grounds of the client making supplies in the UK with potential penalties imposed by HMRC UK.
MICE VAT analysed the whole operation and offered two options how to handle the reclaim in this case, allowing the client to choose the most suitable solution. As a result, VAT refund of GBP 50,000 was secured.
The suppliers included Hotels, DMCs and local service providers. Some invoices were not VAT compliant and had to be re-issued.
MICE VAT estimated the recoverable VAT to allow Finance team to manage the cash flow projections. After the event, MICE VAT acted as a Spain-based agent for VAT reclaim purpose, which is obligatory for all non-EU companies claiming a refund in Spain. As a result, a full refund was obtained for the client in a timely manner.
The case was complicated by the fact that the transaction would have been considered TOMS scheme under the Spanish laws for the agency supplying travel services to a third party. Under TOMS all input and output VAT is unrecoverable.
MICE VAT designed an elegant legal solution and helped the client to restructure the transaction in due time, so that they could secure VAT refund on Accommodation and other supplies, leveraging on specific Spanish laws.
The Italian company previously tried to recover VAT from this event through an international tax recovery firm, but the refund application was rejected on the grounds of the client making supplies in the UK with potential penalties imposed by HMRC UK.
MICE VAT analysed the whole operation and offered two options how to handle the reclaim in this case, allowing the client to choose the most suitable solution. As a result, VAT refund of GBP 50,000 was secured.
The suppliers included Hotels, DMCs and local service providers. Some invoices were not VAT compliant and had to be re-issued.
MICE VAT estimated the recoverable VAT to allow Finance team to manage the cash flow projections. After the event, MICE VAT acted as a Spain-based agent for VAT reclaim purpose, which is obligatory for all non-EU companies claiming a refund in Spain. As a result, a full refund was obtained for the client in a timely manner.
