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Spain VAT – The Rates & Registration
VAT registration regulations and VAT rates in Spain
When doing business in Spain, it is necessary to settle taxes in accordance with Spanish regulations. At the same time, it is worth remembering that both VAT rates for individual products and services, detailed tax regulations and administrative procedures may differ from those in force in other European countries.
If you want to be absolutely sure that your tax returns are handled correctly and in accordance with local regulations - take advantage of our VAT Compliance services in Spain.
When is it necessary to register for VAT in Spain?
All entrepreneurs who sell online in Spain are required to register for VAT in that country if:
- they use a warehouse located in Spain and ship their products from it to their end customers, or
- they have exceeded the distance selling threshold of 10 000 EUR (total for all countries).
VAT registration in Spain - what is worth knowing?
VAT registration in Spain is a two-step process. The first stage of registration leads to obtaining a tax number (NIF). Submission of VAT returns is required immediately after it is assigned. This stage usually takes about 1.5 to 2 months after submitting all required documents to the Tax Authority.
The second stage - assignment of the VAT number - is carried out only after the necessity is proved (e.g., sending confirmations that a warehouse in Spain will be used).
This stage usually takes about 3 months. Officially, the Tax Authority has 6 months to assign a VAT number - starting from the submission of the appropriate application and completion of the first stage of registration.
The required VAT payment methods are SEPA Direct Debit or using an NRC number. If you do not have the ability to pay the tax by these methods - we can allow you to make indirect payments to our partner's account, which then handles their transfer of your dues to the Tax Authority.
Need help with your VAT return? Take advantage of our experience.
Key information about VAT in Spain
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21% |
VAT rates in Spain The standard VAT rate in Spain is 21%. However, some products and services are subject to reduced rates of 4% and 10%. For up-to-date information on VAT rates in Europe, visit the European Commission’s website. |
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Format of the Spanish VAT number VAT numbers assigned in different European countries differ in the type and number of characters and the designation of the country of origin. Spanish VAT number consists of 11 characters: the two-letter country designation ES, one letter indicating the type of business and then a sequence of 8 digits. Do you need to get an Spanish VAT number? Use our VAT registration in Spain service. |
ESX12345678 |
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N12345678 |
Format of the Spanish Tax Identification Number (TIN) The tax identification number assigned in Spain differs in format from the VAT number. For non-individuals, it is a number, consisting of a letter (A, B, C, D, E, F, G, H, J, P, Q, S, U or V - for Spanish entities; N - for foreign entities; W - for permanent establishment of a non-resident in Spain) and a sequence of 8 digits, in which the last is a check digit. |
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Current distance selling threshold in Spain At the moment, there is a single distance selling threshold of 10 000 EUR in all EU countries. The total sales made in all EU countries count towards this threshold. Once this threshold is exceeded, you must register for VAT in each country where sales are made. Do you need help with VAT registration or accounting? We can do it for you. |
10 000 EUR |
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35 000 EUR |
The distance sales threshold applicable in Spain until 30.06.2021 If you made distance sales in Spain before before 30.06.2021 and those sales exceeded the 35 000 EUR - you should settle the overdue VAT for that period. Did you miss the need to register and the VAT settlement deadline? We can register and settle your VAT retroactively. |
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Threshold for the value of imports into Spain, in the Intrastat system If the value of goods imported into Spain from abroad during the year exceeds the amount of 400 000 EUR, these imports must be reported in the Intrastat international statistical system. |
400 000 EUR |
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400 000 EUR |
Threshold for the value of exports from Spain, in the Intrastat system If the value of exports of goods from Spain abroad exceeds the amount of 400 000 EUR, these exports must be reported in the Intrastat international statistical system. |
Additional information on accounting for VAT in Spain
- VAT is settled in quarterly reporting periods.
- For quarterly settlements, by the 20th day of the month following the quarter to which the declaration applies (i.e., by April 20 for the first quarter, by July 20 for the second quarter, by October 20 for the third quarter and by January 20 for the fourth quarter last year).
- In addition to standard settlements, additional annual VAT returns are required, which must be submitted by January 30 of the following year (e.g., the return for 2022 must be submitted by January 30, 2023).
- For VAT settlement in Spain by non-EU companies, fiscal representation is required.
Benefit from our VAT Compliance services in Spain
Do you sell online in various European countries? Need to register your business for VAT in Spain? Worried about having to fill out a lot of paperwork in Spanish and based on Spanish regulations that differ from those in your country?
We will do it for you! Without nerves, stress and hundreds of papers.
