Spain

If a company not established in Spain is providing ‘taxable supplies’ of goods or services in Spain, it may have to obtain a non-resident Spain export VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for Spain export VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.

It is important that all businesses with any commercial activity in Spain assess their compliance obligations and register prior to commencing taxable transactions if applicable.

Did you know that almost all Spanish companies have outsourced their VAT reporting?

What you need to know

There are various scenarios that would trigger an obligation to register for VAT in Spain. Some of the most common examples are:

• Importing goods into Spain from outside the European Union
• Buying and selling goods in Spain (excluding domestic reverse charge)
• Selling goods from Spain which are delivered to customers outside of Spain (business or private customers)
• Acquiring goods in Spain from another EU country (Intra-community acquisitions)
• Holding inventory at Amazon or other in Spain for sale, distribution or consignment
• When total E-commerce sales of goods to consumers in EU, exceeds the threshold of € 10,000 companies are now eligible for signing up for (One-stop-shop) called the OSS scheme by SKAT.

If you already do business or plan to do business in Spain, you should contact TIMEVAT immediately. We speak the language, have easy access to the Spanish authorities and now the procedures. Please contact us for advise and assistance.

VAT Rates, Formats & Thresholds

VAT Rates		VAT Designation	VAT Number Format	Distance Selling Threshold	Intrastat Threshold
21%	(Standard)	IVA	ESX12345678	€ 10,000 *)	€ 400.000	(Arrivals)
4/10%	(Reduced)				€ 400.000	(Dispatches)

*) As of 1st of July 2021 companies are eligible to sign up for (One-stop-shop) the OSS scheme by SKAT when the total annual EU sales exceeds the threshold of € 10,000.

VAT return periods
Monthly or quarterly

Annual returns
Yes

EC Sales Lists frequency
Monthly

EC purchase lists
Yes

Other reporting requirements
No

Reverse charge
The supply of goods and services provided by a non-established to a VAT registered customer in Spain are subject to the reverse charge and the customer accounts for the VAT. Please contact us if you would like details of how the extended reverse charge applies in Spain.

Fiscal repræsentation
A business established in a country outside the EU must appoint a tax representative to register for VAT in Spain.