VAT in Spain
If you are a foreign company selling to or trading with Spain, you must address Spanish VAT (IVA) requirements from your very first VAT-liable transaction. Spain has no registration threshold for foreign companies, and the combination of requirements for a fiscal representative, real-time reporting via SII, and the country's special territories makes compliance more complex than in many other EU nations. Below is an overview of rates, thresholds, and obligations to help you know when action is required.
VAT rates, thresholds, and formats in Spain
| Conditions | Detail |
|---|---|
| Standard rate | 21% (VAT). Applies to most goods and services. |
| Reduced rates | 10% (reduced) on items including food, restaurant and hotel services, and passenger transport. 4% (super-reduced) on basic foodstuffs, books, newspapers, and prescription medicines. |
| Zero rate (0%) | Including, among other things, intra-Community supplies of goods and exports of goods to countries outside the EU. |
| Registration threshold | None. Both Spanish and foreign (non-established) businesses must register from the first VATable transaction. |
| Distance selling threshold (OSS) | EUR 10,000 per calendar year, calculated as a combined total for all EU distance sales (common EU threshold). |
| VAT number format | ES + letter + 7 digits + check character (9 characters following ES), e.g., ESA12345678 for companies and ESX1234567A for individuals. Based on the Spanish NIF number. |
| Reporting period | Monthly or quarterly (Form 303), depending on turnover and activity. Companies subject to SII or REDEME report on a monthly basis. |
| Fiscal representative | Required for companies established outside the EU (unless a mutual assistance agreement exists). Not required for EU-established companies. |
E-commerce and webshop: OSS, warehouse and Amazon
If you sell goods to Spanish consumers via an online store, the rules depend on the location of your goods and your sales volume. As long as your total cross-border distance sales to consumers in other EU countries remain below EUR 10,000 per year, you can charge VAT at the rate applicable in your home country. If you exceed this threshold, Spanish VAT must be applied to sales to Spanish customers, and in this case, it may be advantageous to use One Stop Shop (OSS) and account for all your EU B2C VAT in a single consolidated return, rather than registering in each individual country.
However, the OSS does not cover everything. Do you have physical warehouse in Spain, the picture changes. Spain is one of Europe's largest countries for Amazon warehouses, and if you store goods in a Amazon Fulfillment Center ...or another warehouse in the country, this generally triggers a local Spanish VAT registration, regardless of turnover. The same applies to distribution and consignment from a Spanish warehouse. If you want a complete overview of the rules regarding... Danish e-commerce to the EU, we help you clarify when OSS suffices and when local registration is necessary.
B2B-salg og reverse charge
Ved B2B-handel gælder ofte reglerne om omvendt betalingspligt (reverse charge). Sælger en virksomhed uden fast adresse i Spanien varer eller ydelser til en spansk momsregistreret kunde, vil transaktionen i mange tilfælde være omfattet af reverse charge, så det er den spanske køber, der selv afregner momsen. Spanien anvender desuden reverse charge på udvalgte indenlandske transaktioner, blandt andet visse byggeydelser og bestemte varegrupper. Reglerne er ikke ens for alle situationer, så det er vigtigt at få vurderet den konkrete leverance, før du fakturerer.
SII: real-time reporting for large companies
Spain was one of the first EU countries to implement digital real-time reporting. The system is known as SII (*Suministro Inmediato de Información*) and requires companies to electronically submit detailed information regarding outgoing and incoming invoices to the Spanish tax authorities (AEAT) within four days. SII is mandatory for companies with an annual turnover exceeding EUR 6 million, for VAT groups, and for companies enrolled in the REDEME scheme for monthly VAT refunds. Other companies may opt in voluntarily. If you are subject to SII, you must report VAT on a monthly basis; in return, the requirement for an annual summary report is waived.
VAT refund in Spain
If your company has incurred expenses in Spain, you can often reclaim the VAT paid. VAT refunds are typically available for expenses such as trade fairs and conferences, hotels, meals, fuel, car rentals, motorway tolls, taxis, and advertising, as well as purchases of goods and services. Certain types of expenses—such as fuel, car rentals, and motorway tolls—may be subject to limited deductibility. We review your receipts and ensure that the application is submitted correctly and on time.
The Canary Islands, Ceuta and Melilla
Please note that the Canary Islands, Ceuta, and Melilla lie outside the EU VAT area and have their own indirect tax systems. In the Canary Islands, IGIC (Impuesto General Indirecto Canario) is levied instead of VAT, while Ceuta and Melilla apply the local IPSI tax. Consequently, if you sell to customers in these areas, Spanish IVA and OSS do not apply, and there may be separate registration and reporting requirements. The customer's location determines which system applies.
How TIMEVAT helps you in Spain
TIMEVAT is your specialist partner for international finance and exports, with years of experience acting as a VAT representative across Europe. We speak the language, know the Spanish procedures, and possess the necessary network. We act as your extended arm in dealings with the authorities and look after your business as if it were our own.
- Registration for Spanish VAT, including non-resident registration and fiscal representation.
- Filing and Compliance of VAT, EU sales and purchase lists, and the handling of SII reporting.
- VAT Refund of Spanish expenses, from the assessment of supporting documents to the submission of the application.
Do you need to get a handle on VAT in Spain?
We are ready to advise you on registration, reporting, and refunds, so you can trade with confidence in Spain.
Contact us todayFrequently asked questions about VAT in Spain
What is the VAT rate in Spain?
The standard rate is 21%. In addition, there is a reduced rate of 10% applicable to items such as food, restaurant and hotel services, and passenger transport, as well as a super-reduced rate of 4% for basic foodstuffs, books, newspapers, and prescription medicines. Certain transactions, such as intra-Community supplies of goods and exports, are zero-rated.
Is there a registration threshold for foreign companies?
No. Spain has no registration threshold. Both Spanish and foreign businesses must register for VAT starting from the first VATable transaction in the country. However, for distance sales to consumers, the common EU threshold of EUR 10,000 applies, above which Spanish VAT must be accounted for—potentially via the OSS.
Does my company need a fiscal representative in Spain?
If your company is established outside the EU, you are generally required to appoint a fiscal representative who is jointly and severally liable for VAT obligations. This requirement may be waived if your home country has an agreement with Spain regarding mutual assistance in tax matters. EU-established companies are not required to have a fiscal representative.
How often do I need to file a VAT return in Spain?
VAT is reported monthly or quarterly using Form 303, depending on your turnover and activity. Companies subject to the SII or REDEME schemes always report on a monthly basis. Most companies must also submit an annual summary return, unless they are subject to the SII.
What is SII?
SII (Suministro Inmediato de Información) is Spain’s system for the real-time reporting of invoice data. Subject companies must submit details of outgoing and incoming invoices to the tax authorities within four days. SII is mandatory for companies with a turnover exceeding EUR 6 million, for VAT groups, and for entities registered in the REDEME scheme, while others may opt in voluntarily.
Does Spanish VAT apply in the Canary Islands?
No. The Canary Islands lie outside the EU VAT area and apply the local IGIC tax instead of VAT. Similarly, Ceuta and Melilla have their own IPSI tax. If you sell to customers in these areas, Spanish IVA and OSS do not apply, and there may be separate registration and reporting requirements.
