You may have received a letter, in your mailbox or electronic inbox, with the logo of the Spanish Tax Agency (AEAT). Unfortunately, and most likely, it’s not a birthday card, but the beginning of a limited review procedure. Here’s what it means, how it works, and what you can (and should) do.
What is a limited review?
A limited review is a kind of tax check carried out by the AEAT. It’s not a full-blown audit, but they do want to verify specific aspects of your tax returns.
They do so with what they call “limited” means (although it may not always feel that way).
Step-by-step (and why you shouldn’t ignore it)
- Information request
It all starts with a letter asking for certain documents or explanations. Sometimes it’s simple (an invoice), sometimes more complex (the source of an income). But the key is: you must respond! - Obligation to respond
You’re legally required to submit the documentation within the given deadline. And yes, deadlines count from the date of notification (more on that below). - Provisional assessment and allegations phase
If, after reviewing your reply, they believe there’s an “error,” you’ll receive a provisional tax assessment. It states what you supposedly owe and why. But it’s not final: this opens the allegation phase, where you can defend your position. - Allegations
You can now submit further arguments, clarify misunderstandings, or provide more documents. This is your chance to speak. - Resolution
Hacienda replies. And to be honest, they rarely change their minds. Usually, your allegations are rejected, and a final tax assessment is issued, fixing the amount due and the payment deadline. - Payment
Here comes the less pleasant part: you must pay. If you don’t do it on time, you’ll face a surcharge and enforcement proceedings. Yes, even if you’ve filed allegations or plan to appeal. - Appeal (even if you’ve already paid)
You can still appeal. Either file a reconsideration request with the AEAT (although they rarely reconsider), or go directly to the TEAR (Regional Administrative Tax Court), which is an independent administrative body.
Key things no one tells you (but you should know)!
- The clock starts ticking when you receive the letter;
Even if you’re signed up for electronic notifications, lately AEAT prefers to notify first via standard mail. If you pick it up at the post office, that day counts as the notification date. Don’t miss it!. - Appeal doesn’t stop payment;
You must still pay, unless you apply for and are granted a suspension (which doesn’t happen automatically). Otherwise, enforcement proceedings begin and things get serious (and expensive). - If you win, they pay you back;
If the TEAR sides with you, AEAT must return the money, plus interest. It takes time, but it’s mandatory. - The TEAR is not a court of law.
It’s an administrative tribunal. If you disagree with their decision, you can still go to the judicial courts. But that’s a different arena: longer, more technical, and more complex.
So, what now?
If you’re in the middle of a limited review, or you think you might receive one, get professional advice right away. Most mistakes (and avoidable penalties) happen due to missed deadlines, incomplete documentation, or poor responses.
We can help you at every stage: from replying to the information request to filing allegations or appealing before the TEAR.
Maria D. García Santos