Local name of the tax: Impuesto sobre el Valor Añadido.
Management of the tax by the “Agencia Española de la Administración Tributaria”.
VAT rates in Spain
- General rate: 21%
- Reduced rate: 10%
- Super reduced rate: 4%
- Zero rate and exempt
VAT number format
- Letter followed by 8 digits (N-12.345.678)
Frequency of filing VAT returns
- Monthly, in certain situations due to business turnover, special scheme, etc.
- Quarterly, most commonly.
- In addition, VAT taxpayers are required to file an annual summary form of transactions (Form 390), with a few exceptions.
- Registration: There is no threshold.
- Established taxpayers: There is no threshold.
- Non-established taxpayers: There is no threshold.
- Distance selling: From € 35,000.00 — (€ 10,000.00 from 1 July 2021).
VAT recovery for non-established businesses
Companies not established in Spain may recover VAT if a number of requirements are met.
VAT REGISTRATION OBLIGATIONS IN SPAIN
In Spain there is no amount above which a company or business must register with the Spanish Tax Agency. Therefore, any taxable person that carries out operations/transactions subject to VAT in Spain must register for VAT purposes in that country.
Registration for VAT purposes in Spain is generally required when one of the following situations occurs:
- Import of goods into Spain.
- The purchase and sale of goods within Spain if the seller and/or customers are not registered for VAT purposes in Spain (in this case the reverse charge mechanism is not applicable).
- Certain intra-Community acquisitions of goods from other EU Member States. Intra-Community deliveries from Spain to customers located in other EU countries.
- Distance selling to consumers located in Spain, via online, internet, catalogue, above the set thresholds (35,000 euros at present).
- Storage of goods/stock in Spain through warehouses or similar (Amazon Warehouses, for example).
- The collection of tickets for attendance and admission to live events, fairs, conferences that are held in Spanish territory.
If you have any doubts as to whether or not you should register for VAT in Spain, do not hesitate to contact us and we will analyse your case.
VAT returns in Spain are generally filed on a quarterly basis. However, subject to the business turnover or the VAT scheme applicable to the entrepreneur/company, returns may be compulsory on a monthly basis.
In any case, based on the form of the company/business, the possible returns to be filed in Spain are as follows:
|TYPE OF RETURN
||Turnover exceeding 6,010,121 euros
Monthly VAT refund scheme (REDEME)
|The 30th day of the month following the end of the reporting period (except February, the last day of the month).
||20/4 for (Q1)
07/20 for (Q2)
10/20 for (Q3)
01/30 of the following year for (Q4)
|Annual summary of VAT transactions
||Mandatory, with exceptions
||30th January of the year following the reporting period
||General rule, unless certain thresholds are exceeded.
||20/4 para (1T)
20/07 para (2T)
20/10 para (3T)
30/01 del año siguiente para (4T)
||Thresholds exceeded, monthly return.
||20th day of the month following the reporting period, except for the 12th month where the deadline is 30/1 of the following year
||If the following 2 cases occur:
- the amount of transactions is not > 35,000 euros previous year
- the amount of exempt intra-Community deliveries is not > 15,000 euros previous year
|30th January of the year following the reporting period
||Inbound (arrivals) and
- + 400,000 euros in the previous year or from the time this amount is exceeded in the current year
|12th day of the month following the filing of the return or the next working day.
Registration procedure for non-established business in Spain
If your company or business is not established in Spain and you plan to carry out transactions subject to Spanish VAT, you must fill in form 036 for the purposes of registering for VAT and obtaining your Spanish VAT number.
This form is applicable to both established companies and companies resident abroad (within the EU or outside the EU)
The application shall include the following documents:
- Copy of the passport or identity document of the applicant’s representative.
- Tax identification number of the applicant company.
- Certificate of registration in the Commercial Register in your own country of establishment, stating the validity of the company and the details of the representative.
- Memorandum and Articles of Association of the company.
- Certificate of being a VAT taxable person in your own country of establishment.
- Proof of your intention to carry out an activity subject to VAT.
- The documentation shall be duly translated into Spanish and apostilled with the Apostille of the Hague Convention.
Registration takes between 6 and 8 weeks if the application has been correctly submitted and there are no additional information or documentation requirements from the Spanish Tax Agency.
In the case of companies not established in EU territory, a tax representative must be appointed. For a successful registration, it is always advisable to grant a power of attorney in the name of a natural person so that he/she can appear before the Tax Office on behalf of the non-established company.
Appointment of a tax representative
Entrepreneurs established in the European Union that carry out transactions subject to VAT on the Iberian Peninsula and the Balearic Islands do not need to act through a representative.
In the case of entrepreneurs established outside the European Union, they must appoint a representative with tax residence in Spain for the purposes of compliance with the obligations laid down in Law 37/1992 on Value Added Tax, unless there are instruments of mutual assistance equivalent to those in place in the European Community (currently only in Norway).
Other relevant information
Once your business is registered for VAT in Spain and has been assigned a Spanish VAT number, your business is required to start complying with the local regulations in certain situations. This would mean:
- To issue invoices with the details required by Spanish law.
- Electronic invoicing is permitted subject to agreement with the recipient in which the signature and authenticity of its contents are guaranteed.
- Keeping of invoices and proof of transactions for at least 6 years, in accordance with the Spanish Code of Commerce.
If your company or business needs to register for VAT in Spain and be assigned a Spanish VAT number, do not hesitate to contact our VATONTIME team. We will be more than happy to help you.