VAT in Spain is an important topic for companies engaged in international business. In this article, we will discuss the key aspects related to VAT in Spain, including current rates. We will also focus on the registration process and obligations for VAT declarations.
Table of Contents
VAT in Spain – Basic Information
VAT (Impuesto sobre el Valor Añadido) in Spain is one of the main sources of revenue for the state. It applies to most sales transactions of goods and services. Spain’s VAT system is based on European Union directives. This means that its rules are similar to those in other EU countries.
VAT rates in Spain
In 2024, the following VAT rates apply in Spain:
| VAT Rate Type | Rate | Examples of Application |
| Standard rate | 21% | Most goods and services |
| Reduced rate | 10% | Food, soft drinks, passenger transport |
| Super reduced rate | 4% | Basic necessities, books, prescription drugs |
| Zero rate | 0% | Export, international services |
It is recommended to check the current VAT rates regularly. They may change depending on Spain’s fiscal policy.
VAT in Spain – Registration
VAT registration in Spain is mandatory for companies with sales above specific thresholds. The registration procedure may seem complicated, especially for foreign companies.
When Do You Need to Register?
You need to register for VAT in Spain if:
- you sell goods or services in Spain,
- you have exceeded the sales threshold set by Spanish law.
- you intend to import goods into Spain.
VAT Registration Process in Spain
- Preparing documents. You will need company details, identity documents, and information about your business activities.
- Submitting an application. The VAT registration application is submitted to the Spanish Tax Office (Agencia Tributaria).
- Obtaining a Spanish VAT Number (NIF). Once you register, you will receive a Tax Identification Number (NIF). It is necessary to file VAT returns.
VAT in Spain – Declarations & Obligations for Taxpayers
Submitting VAT declarations in Spain is mandatory for all registered taxpayers. Declarations are submitted monthly, quarterly, or annually, depending on the company’s turnover.
Types of VAT Declarations in Spain:
- Monthly declaration (Modelo 303). It is for companies with an annual turnover exceeding 6 million EUR.
- Quarterly declaration. It is for companies that do not exceed this threshold,
- Annual declaration (Modelo 390). It is a summary of all transactions for the entire year.
VAT declarations must be submitted online, via the Agencia Tributaria platform. Failure to comply with deadlines may lead to financial penalties.
VAT in Spain – Key Exceptions and Special Rules
Spain, like other EU countries, has some exceptions and special rules regarding VAT. It is worth paying attention to:
- International transactions. Export of goods outside the EU is subject to a zero rate, but it must be properly documented,
- Small businesses. Theycan benefit from the simplified VAT settlement procedure in Spain.
- Travel industry. Spain offers special VAT rates for travel services. They are lower than the standard ones.
VAT in Spain – Summary
Understanding VAT in Spain is crucial for any company operating in this market. Knowing the rates, registration procedures, and obligations related to VAT can help you avoid problems with the Spanish tax office.
If you need help registering for VAT in Spain or have questions about your tax return, please contact us. Our experts provide comprehensive services in the field of international taxes. Professional support will allow you to focus on developing your business.
FAQ – Frequently Asked Questions about VAT in Spain
When do I have to register for VAT in Spain?
VAT registration is required if you do business in Spain and exceed certain sales thresholds.
What are Spain VAT rates in 2024?
Spain has three main VAT rates: 21% (standard), 10% (reduced) and 4% (super-reduced).
Can I register for VAT in Spain online?
Yes. You can register for VAT in Spain online through the Agencia Tributaria platform.
What are the deadlines for submitting VAT declarations in Spain?
VAT declarations must be filed monthly, quarterly, or annually. It depends on the company’s turnover.
Do I have to pay VAT on sales to other EU countries?
Sales to other EU countries may be exempt from VAT. This is the case if the buyer has a valid EU VAT number.
What are the penalties for failure to file a VAT declaration in Spain?
Failure to submit VAT declaration on time may lead to financial penalties that can be imposed by the Spanish tax authority.
Can I deduct the VAT paid in Spain?
Yes. VAT paid in Spain can be deducted as long as it is related to business activity.
What documents do I need to register for VAT in Spain?
For VAT registration, you will need documents that will provide information about your business activities.
Do I need to register for VAT in Spain if I only sell online?
Yes, if you sell goods or services online to customers in Spain, you must register for VAT.
How can I get help with VAT registration in Spain?
You can contact our tax experts. They will help you with the entire VAT registration and settlement process in Spain.
