VAT COURT RULING – EUCC

Posted by Resortalia & filed under Events.

A pioneering Court ruling in Spain, that requires the Tax office to repay 100,650.51 euros to EUCC for VAT charge on fees from the last four years.

 

In the first years since the founding of the Urban Planning Entity of Conservation Roda Golf & Beach Resort (from now on EUCC Roda) was set up, VAT corresponding to the current financial year was applied and added to the Entity fees.

The amount paid to the Spanish Tax Office corresponding to such V.A.T. was 100.650,51 €, corresponding to the financial years of 2010, 2011 and 2012

When RESORTALIA started providing services in December 2011, it was considered that such V.A.T. shouldn’t be applied to the entity fees, so in March 2012, we submitted an official request of review (consulta vinculante) to the Spanish Tax Office.

In January 2013, the Tax Office issued the official reply, confirming that the VAT shouldn’t have been applied to the EUCC fees. Since then, V.A.T. was no longer applied, which meant an automatic significant saving for owners.

In 2013, several meetings took place to request the refund of the amount. An amicable solution was not possible, so the EUCC contracted a Law Firm specialised in Tax legal cases, ABAD & ASOCIADOS ABOGADOS Y ECONOMISTAS, who in 2014 initiated the request of the refund.

After years of work, with the Public Administration and in Court, we’re pleased to inform you that the High Court (Tribunal Superior de Justicia) from Murcia has ruled in favour for the appeal filed by the EUCC.

Such judgement, pioneering in tax terms, could be appealed in the Spanish Supreme Court but, we are pleased to inform you that the ruling is now final, as long as the State’s Attorney has not filed an appeal. Now, the file will return to the Tax Office and RESORTALIA will contact them to initiate the proceeding to request the refund of 100.650,51 €.

It’s a pioneering judgement, so it has even been published in the newspaper:

http://sanjavier.laverdad.es/actualidad/hacienda-devolvera-roda-20190315012207-ntvo.html

As always we will keep you informed with any progress.

 

FAQ

Resortalia has prepared this brief list of FAQ regarding this matter. We hope you find them useful.

  • When will the Tax Office refund the money?

It’s not possible to know when the money will be refunded. The case file has now been return to the Tax Office and an administrative file will be initiated.

  • Will the Tax Office apply an individual refund? 

In the event that the money is refunded, it will go to the EUCC’s bank account. There will not be an individual refund, as the VAT was initially paid by the EUCC.

  • Who will make the decision on the use of that money?

The Board is entitled to make decisions on how the money will  be used, in the even it is refunded. However, any potential use would be voted on in an Assembly, as a motion or as an item of the Budget.