Spain VAT Information
If you are a foreign/cross-border business selling or planning to sell goods or services in the Spain, you may be required to register for VAT with the Agencia Estatal de Administración Tributaria (Spanish tax office).
You can always review the latest Spanish VAT regulations on the Agencia Estatal de Administración Tributaria website.
Spain VAT Information
Spain introduced VAT (IVA) in 1986 and is overseen by Agencia Estatal de Administracion Tributaria. As a member of the European Union (EU), Spain has incorporated all EU VAT Directives into Spanish VAT law. The Spanish VAT law covers all details of VAT registrations, compliance and returns.
The standard VAT rate in Spain is 21%, however, reduced rates are also available for specific goods and services. These are as follows:
21% Standard VAT Rate
10% Reduced VAT Rate - this is for certain foods, water, pharmaceutical products, medical equipment, domestic transport, soft drinks, flowers, admission to sporting events, social housing, bars, cafes, etc..
4% Reduced VAT Rate - certain foods, medical equipment, pharmaceutical products, books, newspapers, domestic care services, etc..
0% VAT Rate - some gold coins, ingots and bars.
When Should You Register?
If you are a foreign/cross-border company providing taxable supplies in Spain, you may be required to register for VAT locally in Spain and report VAT.
Need a Fiscal Representative in Spain
Non-EU businesses selling in Spain will need to appoint a fiscal representative alongside completing VAT registration and returns.
Fiscal representatives are jointly liable for VAT submissions of their clients.
Safari Star offers a Spanish Fiscal Representative as part of VAT registration package.
Once registered for Spanish VAT, in order to stay VAT compliant you will have to start following some local VAT rules, such as:
Issuing invoices with disclosed details, as per local Spanish VAT law.
Maintenance of accounts and records, which must be held for a minimum of 10 years
Invoicing for customers goods / services
Processing credit notes and other corrections
VAT Registration Associated Fees and Timelines
All fee includes: VAT registration, documents translation, certification, fiscal representation and handling notification services.
The registration time scale is estimated and calculated from the time when all required documents have been received and relies on the current workload of the local tax authorities.
Price are in EUR. Prices exclude EORI application, EC Sales list and intrastat filing.
Frequently Asked Questions
Question: How many VAT declarations do I need to make per year in Spain?
Answer: Spain has a quarterly VAT declaration and an annual VAT declaration, that is, Q1-Q4 quarter + 1 year, a total of 5 declarations a year; the period for quarterly declarations is fixed to the months of April, July, October and January.
Question: What are the common reasons for VAT penalties in Spain
Answer: One of the most common scenarios we see for fines in Spain is due late filing, resulting from incorrect payments. Here are some common scenarios that may result in a late filing:
Late VAT Return Filing - if the VAT filing is submitted after deadline has passed
Payment is not clearly referenced - when making a payment, you should clearly note the corresponding companies tax number in a note to payment. Otherwise it is difficult to allocate the payment and it could result in a late filing.
Incorrect amount VAT amount - if the amount in the VAT return filing does not match the actual amount paid. This can arise when payment is made in currencies other than EURO, where different conversion rates are applied, or transaction fees or payment handling fees have not been accounted for. If the amount is not accurate, again, it will lead to a late return filing.
Question: What is Hague Certification?
Answer: The Hague Commission on Private International Law is an international organization whose main purpose is to resolve the conflict of laws between States through the formulation of conventions in order to achieve the goal of gradually unifying private international law.