Spanish VAT rates are as follows: The standard rate of VAT in Spain is 21% and covers all
products and services, which are not covered by the reduced rates of 10% and 4% and the
zero rate.
When is it necessary to register for Spanish VAT?
A company supplying goods or services in Spain may be required to register for Spanish VAT, known locally as IVA – impuesto sobre el valor añadido. VAT rates in Spain. The main
situations in which registration for Spanish VAT is required include:
- importation of goods into Spain,
- the purchase and sale of goods in Spain, if the supplier and customers are not Spanish
companies with registered VAT, - the sale of goods to Spanish consumers over the Internet,
- storage of goods in a consignment warehouse in Spain.
There is no VAT registration threshold for non-resident companies that provide taxable
services in Spain. Foreign companies that sell goods over the internet to Spanish consumers must register for Spanish VAT if the turnover to foreign consumers exceeds €10,000.
How to register for VAT in Spain?
To obtain a Spanish VAT number, you must submit an application in Spanish, which must be
accompanied by:
- a VAT certificate to prove that the company is registered for VAT elsewhere in the EU, if
applicable, - an extract from the companys national commercial register,
- a declaration that the company does not have a permanent establishment in Spain,
- a power of attorney for the companys tax representative, which should be notarised.
The application should be submitted to the local tax office of the companys fiscal
representative.
Since 2004, EU countries can no longer require foreign companies to appoint a fiscal
representative for VAT purposes. However, Spain is slowly continuing to oblige countries to
have a fiscal representative who shares the tax liability with the client. The fiscal
representative is jointly and severally liable for the taxpayers VAT obligations.
VAT declarations in Spain
VAT declarations (monthly or quarterly) must be submitted by non-resident companies
registered for Spanish VAT, among others. Declarations can be submitted:
- quarterly – apply to taxpayers with sales of less than €6 million in the previous year,
- monthly – applicable to taxpayers whose sales in the previous year exceeded €6 million,
- Annual VAT returns – apply to all companies registered for VAT in Spain.
Declarations must be submitted by the 20th of the month following the end of the
accounting period (month or quarter). Annual spanish VAT must be submitted by 30
January of the following year.
Tax representative in Spain
The following non-EU entities are required to appoint a tax representative:
- businesses registered for MOSS in Spain,
- companies entitled to deduct VAT / submit periodic VAT returns,
- companies that pay VAT in Spain and wish to claim a VAT refund.
Companies that are established in a Member State may voluntarily use a tax representative, but are not obliged to do so.
