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News & Tips

Real-time data reporting

Introduction of real-time data reporting [“Suministro Inmediato de Información”] initially set for 01/01/2017 has been postponed to 01/07/2017.


Anti-fraud measures [Tip]

A penalty of 10% will be applied in case of failure with the obligation to communicate to Spanish tax authorities the application of the reverse charge mechanism in the construction sector.


New way of communicating with the tax authorities [News]

Since 01/07/16, all communications towards the Spanish tax authorities from companies filing monthly VAT returns have to be made electronically through the web portal of the tax authorities. Failure to comply with this obligation will result in a penalty. 


 More VAT News & Tips - Spain

DOING BUSINESS IN SPAIN [ES] - VAT GUIDE

 

General

VAT Directive

Spain

What is the structure of the VAT number?

Each individual VAT identification number shall have a prefix in accordance with ISO code 3166 - alpha 2 - by which the Member State may be identified.

 

There are two VAT numbers in Spain. The "regular" VAT number and a so-called "EU" VAT number used for intra-EU transactions. Spanish EU VAT numbers have 11 characters [ES + 1 letter + 8 digits]. 

 

What is the local name of the tax?

 

Impuesto sobre el Valor Añadido [IVA]

 

VAT rate

VAT Directive

Spain

 VAT rates

Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services.

Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.

 

Spain applies a standard VAT rate of 21% and two reduced VAT rates: 4% and 10%.

 

See VAT rates applied in the EU.  

VAT return

VAT Directive

Spain

How is the tax period determined? 

The tax period shall be set by each Member State at one month, two months or three months.

Member States may, however, set different tax periods provided those ones do not exceed one year. 

Monthly/Quarterly

Your company has to report its VAT position by filing VAT returns on a quarterly basis if your annual turnover in the preceding year did not exceed € 6.010.121  and on a monthly basis otherwise. Returns also have to be filed on a monthly basis when your company is registered in the Special Monthly Refund Register [REDEME].

 

When should periodical VAT return be filed?

The VAT return shall be submitted by a deadline to be determined by Member States.

That deadline may not be more than two months after the end of each tax period.

 

Periodical VAT return must be submitted by electronic means before the 20th day of the month [20 of N+1] after the tax period to which it relates. The VAT return for Q4 and for the month of December must however be filed by January 30th of the following year.

Statement

VAT Directive

Spain

Annual recapitulative statement

Is this requirement laid down in the country and what is the filing deadline?

Member State may require the taxable persons to submit a return in respect to all transactions carried out in the preceding year.

That return shall provide all the information necessary for any adjustments.

 

Your company has to file a yearly statement [annual VAT return - Modelo 390] summarizing all taxable transactions performed/received during the calendar year plus additional information no later than January 30th.

Recapitulative statement of intra-EU supply of goods [European Sales Listing - ESL]

Are quarterly filings allowed by the country and what is the filing deadline?

The recapitulative statement shall be drawn up for each calendar month.

However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency.

The recapitulative statement shall be submitted within a period not exceeding one month.

 

The recapitulative Statement [ESL - VIES return] must be drawn up for each calendar month and submitted to Spanish VAT authorities by the 20th of the month following the reporting period [month/quarter], except for the last statement of the year [December or Q4] which is due on January 30th of next calendar year. Yearly reporting period is also possible under specific conditions.

Payment

VAT Directive

Spain

What is the payment deadline?

Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. 

Member States may, however, set a different date for payment of that amount.

 

 

The VAT due should be paid by filing deadline for the VAT return [no later than the 20th day of the month after the end of the tax period -month/quarter] to which it relates. 

Are interim payments required?

Member States may require interim payment to be made.

Interim payments are not required.

VAT refund

VAT Directive

Spain

VAT refund for companies VAT registered in the country.

Is any VAT credit automatically carried forward or refunded?

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.

 

 A VAT credit is in principle automatically carried forward to the next period, unless a tax refund has been applied for. Under the general procedure, your company may only apply for the refund in the last VAT return of the year. 

Special measures for foreign companies

VAT Directive

Spain

Optional reverse charge [art. 194 of the VAT Directive] for non-resident supplier.

SUPPLY OF GOODS

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is applicable to all  supplies of goods carried out by a non-established taxpayer provided the recipient is a taxpayer [whether he is established  or not in Spain].

The reverse charge is therefore also applicable between two non-established taxpayers.

 

Optional reverse charge [art. 194 of the VAT Directive] for non-resident provider. 

SUPPLY OF SERVICES

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is applicable to all domestic supplies of services carried out by a provider not established in Spain [whether he is VAT registered or not in Spain] to a taxpayer established for VAT purposes in Spain.

Have simplification measures been taken to avoid registration of the foreign company for the goods held on consignment in the country?

 

No

No simplification measures are available for consignment stock.

Foreign company must be registered in Spain merely for the submission of the European Sales and Purchases Listing. The subsequent supply of goods is subject to normal VAT rules [general reverse charge].

Do special arrangements apply to "call-off-stock"?

 

No

No simplification measures are available for call-off-stock.

Foreign company must be registered in Spain merely for the submission of the European Sales and Purchases Listing. The subsequent supply of goods is subject to normal VAT rules [general reverse charge].

 

Triangulation can be applied when the middleman (B) is VAT registered [as a non-established company] for others supplies in the 3rd country [Member State of destination]?  

 

 

VAT on import

VAT Directive

Spain

VAT warehousing regime

Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.

 

Spain has introduced a VAT warehousing regime applicable under specific conditions.

VAT on importation – Postponed accounting via the VAT return.

Is it possible for a company to pay the import VAT via the periodical VAT return?

Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return  to be submitted.

 

Postponed accounting via the VAT return is possible in Spain [01/01/2015]. A deferred payment for VAT and customs [similar delay] or only for VAT is also possible under specific conditions.

 

Miscellaneous

VAT Directive

Spain

Intrastat Threshold  

Dispatches: € 400,000

Arrivals : € 400,000

 

Distance Sales - Threshold  

€ 35,000

See various thresholds applied in the EU

 

Ministry of Finance   website

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