VAT OBLIGATIONS IN SPAIN

How is the tax period determined in Spain? 

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?

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.

VAT Directive

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. 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.

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

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.

VAT Directive

Member State may require 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.

 

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

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.

VAT Directive

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.

What is the payment deadline?

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?

Interim payments are not required.

VAT Directive

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. Member States may require interim payment to be made.

 

Is any VAT credit automatically carried forward or refunded?

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.

As from April 2016, it is possible to use an EU/SEPA bank account number for refund of a VAT credit. Non-residents are no more required to open a Spanish bank account in order to receive Spanish VAT refund accordingly.

Note that if you are VAT registered in Spain, a Spanish bank account is still necessary to pay VAT due.

VAT Directive

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the 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.