VAT in Spain
Spain has grown into a competitive and rapidly developing economy that is also a global advocate for freedom and human rights since joining the European Union in 1986. VAT is a tax that is levied on the majority of business-to-business and business-to-consumer transactions in all of European Union’s member states.
Everything you need to know about VAT registration, returns, Tax Representation (if applicable), and your legal duties in Spain is conveniently located right here!
Selling in Spain?
Introduction to VAT in Spain
The VAT numbering scheme in each EU member country is slightly different, with different numbers and letters. Inaccuracies in the figures are checked against the VIES system on a regular basis, and inaccuracies can result in delays or even fines. Two letters are placed before the VAT number if the company is using it for intra-community trade.
For any European trade, the NIF (Number de Identificación Fiscal) is required. Each letter in the NIF is represented by a unique number between 1 and 11 and was formerly known as the “Código de Identificación Fiscal.”
The customary country code, which in this case is “ES,” is the first two letters. ESX1234567X is created by adding a letter, seven digits, and then another letter to the end of the number, giving the result: ESX1234567X. This is true for overseas firms as well.
Domestic enterprises, on the other hand, replace the letter following the country code with a number, yielding ES12345678X as the consequence of the substitution.
Scope of Taxation
VAT is charged on the following types of transactions:
• Spanish VAT is levied on the supply of goods and services made in Spain by taxable persons.
• Supplies of goods and services provided by entrepreneurs or professionals.
• Intra-Community acquisitions of goods.
• Imports.
Taxable persons include:
• Independent entities carrying out an economic activity.
• Non-commercial entities such as public bodies carrying out an economic activity that competes commercially.
Spain – VAT information
| National Legislation | Agencia Tributaria |
| VAT in local languages | Número de Identificación Fiscal (Formerly named Código de Identificación Fiscal) |
| VAT number format | For foreign companies, ESX9999999X (country code+letter+7 digits then another letter) For domestic companies, ES99999999X (country code+8 digits then letter) |
| VAT rates
|
Standard 21%; Reduced 10% and 4% |
| Zero-rated (0%) and exempt | |
| Frequency | Monthly, quarterly, and annual returns |
| Thresholds | |
| Registration | |
| Established | None |
| Non-established | None |
| Intra-Community acquisitions | EUR 10.000 |
| Intra-EU Distance sales and electronically supplied services to consumers (OSS) | EUR 10.000 |
| Recovery of VAT by non-established businesses | Yes |
| Compliance Returns and Deadlines | |
| VAT Return Q | 20th day of the month following the reporting period |
| VAT Return M | 30th day of the month after the reporting period for taxpayers who are compelled to use a monthly filing period |
| Intrastat M | 12th of the month following the month |
| Sales List | Monthly- 20th day of the month following the reporting period Quarterly- 20th day of the month following the reporting period Bi-monthly (only once)- 20th day of the month following the reporting period The ESPL returns for December and the fourth quarter must be filed by the 30th of January of the following year. |
| Annual Return | Between 1 and 30 january. |
Last Updated: 28/12/2021
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax