The Electronic Refund Document

In the Balearic Islands we are used to receiving many foreign visitors from outside the EU, and there is hardly a shop that has not had to process a VAT refund for purchases of goods over 90.15 euros (VAT included).
The novelty is that, as of 2019, these refunds will only The new feature is that, from 2019, these refunds can only be managed through the so-called "Electronic Refund Document" (ERD), the steps to follow are as follows:

• When the sale is made, the trader must send the data to the tax authorities electronically and then receive a DER.
• The shop will give the tourist the DER so that he/she can fill it in automatically at one of the "filling machines" installed at ports and airports when leaving our country.
• Once the ROD has been completed, the tourist can obtain the VAT refund through a collaborating entity (as is currently the case for invoices) or by sending it to you.

However, during 2018, VAT refunds can either continue to be handled in the traditional way (paper invoice customs clearance), or start using the RED system that will come into force in 2019 .