VAT Spain Guide
Read our guide and find out everything you need to know about VAT in Spain, from registration to filing, and more.
Planning a business expansion into Spain? Thenyou probably know that includes, in most cases, registering for VAT in Spain.It can be a complicated process, though, particularly for the uninitiated. Readon to learn more about Spanish VAT rules and how they affect your businessactivity in Spain.
What is the VAT rate in Spain?
VAT in Spain is known as Impuesto sobre elValor Añadido (IVA). If your business meets certain criteria you will berequired to obtain a Spanish VAT number and declare and pay VAT locally. Thereis a standard Spanish VAT rate of 21%, two reduced rates of 10% and 4%, andalso a zero VAT rate.
Registering for VAT in Spain
Whether your business is resident or non-resident,there is no minimum threshold for VAT registration in Spain.
Businesses must register for VAT when thetotal threshold of €10,000 for intra-community distance selling is exceeded andthey have not chosen to pay the VAT in Spain via the One Stop Shop. Thisthreshold became EU-wide on July 1, 2021. They also must register if they’restoring products in Spain or are participating in an FBA(Fulfilled-by-Amazon) program thatincludes Spain.
Businesses can register for a Spanish VATnumber with the Administración de la Agencia Estatal de AdministraciónTributaria (AEAT). Once your application is submitted it can take upto 4 weeks to receive your VAT number.
Fiscal representative Spain
Non-EU businesses selling in Spain who are VATregistered as non-resident are required to appoint a fiscal representative.This representative will be jointly liable for the Spanish VAT.
Spanish VAT return filing and penalties
Your company’s annual sales amount willdetermine how frequently you file a Spanish VAT return. VAT returns must befiled electronically.
Submit a monthly return if your annual salestotaled more than €6 million.
Submit a quarterly return If your annual saleswere less than €6 million.
All VAT-registered businesses are alsorequired to file annual VAT returns.
Spanish VAT returns must be submitted by the20th of the month following your accounting period. The deadline for submittingannual VAT returns is January 30th of the following year.
Missing VAT filing and payment deadlines inSpain will result in penalties, which is why having a tax representative isrecommended. They will ensure that all Spanish VAT responsibilities are met.
Fines for late submission are added as apercentage of the Spanish VAT due, starting at 1% in the first month with anadditional 1% being applied for each month thereafter up to the 12th month. Forlate payments, the interest applied is 5%, 10%, or 20% depending on the paymentdelay.
Spanish Intrastat declarations
Intratat applies to both resident andnon-resident companies in Spain. Intrastat returns must be filed by the 12th ofthe month. Late filing may incur a penalty. The annual threshold for filing astandard Intrastat return is €400,000 (arrivals/dispatches) and €6,000,000 fora detailed Intrastat return (arrivals/dispatches).
Reverse charge in Spain
In Spain, the reverse charge mechanism shiftsthe responsibility for reporting and paying VAT from the supplier to therecipient of certain goods or services. The recipient must account for both theinput and output VAT on their VAT return, rather than the supplier charging andremitting the tax. Under these circumstances, the foreign supplier doesn’t needto be VAT-registered in Spain.