VAT rates in Spain 2024 – What you need to know
Value Added Tax (VAT) plays a crucial role in the economy of every country, regulating the taxation of goods and services. In Spain, like in many other European countries, there are several VAT rates that determine how much tax is charged on different types of products and services. Understanding these rates and the rules of their application is essential for entrepreneurs and individuals conducting business activities. Here’s everything you need to know about VAT rates in Spain.
Current VAT rates in Spain
Currently, four VAT rates apply in Spain:
- Standard rate – 21%
- Reduced rate – 10%
- Super reduced rate – 4%
- Zero rate – 0%
The standard VAT rate in Spain is 21%. It applies to all products and services not covered by reduced rates (10% and 4%) or zero-rate.
The first reduced rate is 10% and applies to a wide range of goods and services, including some food items, catering services, passenger transport, construction works, social services, and many others.
The second reduced rate is the super reduced rate, which is 4%. It applies to some food items, pharmaceutical products, books, newspapers, social services, and others.
The zero VAT rate applies to specific transactions, such as certain forms of international transport, services provided by doctors, or health-related products.
VAT registration in Spain
VAT registration in Spain is mandatory for entrepreneurs selling goods and services subject to VAT taxation within the country. The registration process is carried out through the local branch of the Tax Agency (AEAT). Entrepreneurs must register before commencing business activities; otherwise, they risk financial penalties.
More information about VAT registration in Spain can be found in our article: https://amavat.eu/vat-registration-in-spain-for-the-e-commerce-sector-key-steps-and-information/.
Spanish VAT number for online sellers: NIF-IVA
The Spanish VAT number, also known as Número de Identificación Fiscal de IVA (NIF-IVA), is essential for e-commerce sellers operating in Spain. It consists of 11 characters, including the prefix ES and 9 digits, with the first and last digits possibly being letters.
The experience of e-commerce entrepreneurs shows that obtaining a Spanish VAT number can usually take from two to three months (NIE number) and up to six months (NIF number). However, during periods of increased interest or during holiday and holiday seasons, this process of obtaining VAT (NIE number) may take up to four or five months. Therefore, it is important to start the registration procedure early enough. It is also worth obtaining an electronic certificate of VAT number during the VAT registration process in Spain.
Requirements for VAT invoices in Spain
VAT invoices in Spain must include a range of mandatory information, such as:
- Date of issue and, optionally, the transaction date
- Unique invoice number
- VAT identification number of the supplier
- Full address of both the supplier and the customer
- Detailed description of the goods or services provided
- Information regarding the quantity of goods or services
- Unit price of each item or service
- Details of any discounts granted
- Net value of the taxable supply
- VAT rates applied to each item
- Amount of VAT tax split according to the applied rates
- Total gross amount of the invoice
In Spain, there is a requirement to retain issued invoices for a period of four years.
Submission of VAT ES declarations
In Spain, the submission of VAT declarations is required under various rules depending on the sales volume and type of activity. Companies must submit monthly, quarterly, or annual VAT declarations. Monthly declarations are filed when the sales of goods in the previous year were less than 6 million euros, while quarterly declarations are required if sales exceeded this amount. All companies registered for VAT in Spain must submit annual declarations. Additionally, if sales to other EU countries exceed 10,000 EUR, the entrepreneur must account for VAT in Spain or within the VAT-OSS system.
Monthly declarations must be filed by the 30th day of the following month, quarterly by the 20th day, and annual declarations by January 30 of the following year.
Penalties and interest on VAT in Spain
Penalties for VAT irregularities in Spain range from 20% to 200%, and late payment interest penalties, usually at a rate of 5% per month, are applied. These penalties can reach up to 20% after one year.
Intrastat ES
In Spain, statistical reporting is mandatory upon reaching thresholds typical for all EU countries. These thresholds for imports and exports are 400,000 euros.
More information about thresholds and applicable rates in other EU countries can be found on our website: https://amavat.eu/resources/current-intrastat-thresholds-and-vat-rates-in-europe/.
For any questions or additional information, feel free to contact our team of experts, ready to provide assistance and support: Contact us – amavat®.
Iga Turniak
