When do I need to submit a
VAT registration in Spain?
- One reason that leads to a seller having to submit a Spanish VAT registration is the storage of goods in Spain.
- Both independent storage in Spain as well as storage as part of the service a fulfillment provider, which has warehouses in Spain offers, require a seller to register for VAT in Spain.
- In some cases the seller must then also start filing VAT Returns and communicate with as well as pay VAT debts to the local authorities.
- Apart from the known storage of goods in Spain, the participation in a Fulfilled-by-Amazon program might also require a VAT registration in Spain.
- That’s because participating means authorizing Amazon to store the wares in all of the countries that are part of that specific program.
- Spain is for example part of the PAN-EU program and even if the seller doesn’t explicitly know that the goods are stored there, they still might be. That means participation in the PAN-EU FBA-program therefore requires a VAT registration in Spain.
- The EU-wide annual threshold of € 10,000 dictates that once the threshold is crossed a VAT registration becomes necessary in each country a seller is selling to.
- This rule applies for all distance sales to B2C customers unless the distance seller is participating in the OSS-Program.
- Beside the registration for VAT, the filing of regular tax declarations and VAT returns in Spain are also obligatory for distance sellers crossing the threshold.
If you need help with any kind of registration in Spain or the filings of documents with the Spanish tax authorities, don’t hesitate to contact the hellotax team today. You can keep focusing on your business in Spain while we take care of your VAT duties.
How to submit a VAT registration in Spain
To register for a Spanish VAT number, you need to contact the “Administración de la Agencia Estatál de Adminsitración Tributaria (AEAT)”. To communicate with the Spanish authorities, you need a local representative who handles the correspondence. Since 2004, EU countries are actually no longer permitted to require a VAT representative for sellers from the EU. However Spain has been slow in adjusting to this rule. Therefore the local representative is still needed and has to contact the AEAT according to his location.
Additionally the following documents need to be submitted:
- VAT certificate from VAT IDs you have already received in other EU countries, if available
- Extract of your company from the national trade register
- Declaration that your company does not have a permanent establishment in Spain
- Articles of Association and memorandum
- Power of Attorney of your local agent or representative in Spain.
Some of the documents must be translated into Spanish by a sworn translator and certified by a sworn notary!
If you choose to register for VAT in Spain you have to keep in mind both the EU-wide threshold as well as Spanish rules and regulations. The hellotax automation tool can automate VAT payments to the Spanish authorities and our team can help you with Spanish VAT returns and the communication with the Spanish tax offices.
Contact us today!
The EU-wide threshold
and Distance Sales to Spain
Since July 2021 a threshold of € 10,000 indicates whether or not a distance seller needs to register for VAT in Spain and other European countries. Until then country-specific thresholds, such as the Spanish one of € 35,000 were used to ascertain VAT subjectivity. Now, whenever the net worth of distance sales crosses the new EU-wide threshold all goods and services need to be taxed with country-specific VAT rates, the seller needs to register for VAT and, under some circumstances, needs to start filing VAT returns and tax declarations. If the sales stay below € 10,000 however, deliveries are taxed with the business home country’s tax rate and VAT is paid to the home country’s authorities. A VAT registration in Spain is therefore no longer necessary.
Attention: The delivery threshold is called “EU-wide” because sales to all European countries count toward the € 10,000 mark together. The threshold can be hit by sales to Spain and for example France and Italy together. VAT registrations are then necessary in all three countries at the same time.
In this example a German distance seller delivers his goods to France, Poland, and Spain. He makes a net turnover of € 6,000, € 3,000, and € 2,000 in these countries, amounting to € 11,000 combined and therefore surpassing the threshold. Based on the rules of the threshold regulations the seller needs to register for VAT in France, Poland, and Spain. While the first € 10,000 of turnover are taxed with the German VAT rate, the last € 1,000 are not. If those sales were made to Spain, they need to be taxed with the Spanish VAT rate.
What happens if I
participate in the OSS-Program?
The introduction of the One-Stop-Shop changed the game when it comes to VAT registration regulations EU-wide. It is meant to help European distance sellers stay VAT compliant by easing the bureaucratic load. While the € 10,000 threshold is no longer applicable, sellers do not need to register for VAT in every country anymore. Instead, they apply country-specific VAT rates to their sales, pay the VAT to their own tax authorities, which then redistribute the money to the foreign tax offices.
Attention: Participation in the OSS program can be a big advantage, especially for sellers from countries with high VAT rates, or for sellers who are active in many countries. If goods are however stored in a foreign European country, for example the Netherlands, a seller still has to register for VAT. If goods from a Dutch warehouse are then delivered to Dutch consumers, the seller also needs to file a Dutch VAT return and needs to pay the VAT debt to the Dutch authorities directly.
Example: Instead of registering for VAT in Spain, France, and Poland, the German distance seller from the example above can choose to register for OSS. In that case he would need to apply the corresponding VAT rates to his sales from the beginning. Since the rates are higher than the German VAT rate, that could lead to a small disadvantage compared to other German sellers. However he would save money and time by not having to register for VAT and not having to fulfill any VAT duties in those three countries. Instead he would only pay VAT to the German tax authorities.
hellotax can help you with all VAT-related questions and problems. That includes both a VAT registration in the Netherlands as well as the registration for OSS. Our experts can also help you decide which option would be more beneficial to you and help you navigate VAT responsibilities in several countries.
Frequently Asked Questions
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The general VAT rate in Spain is 21% and applies for goods and services. There is a reduced VAT rate of 10% for e.g., certain foodstuffs or water supplies. Another VAT rate of 4% taxes for example some pharmaceutical products or books (excluding e-books). A 0% taxation is applied for intra-community transport by air and sea.
VAT returns in Spain are to be filed monthly or quarterly. All businesses are required to file annual VAT returns. You file your VAT return in Spain monthly when your turnover exceeds €6,000,000. Below €6,000,000 you file your VAT returns quarterly.
Spanish VAT returns, which are filed monthly are due on the 30th, and quarterly are due on the 20th of the month following the tax period. For example, February 20 for January or April 20 for the first quarter. The annual VAT filings are due January 30 of the following year.
After all the documents are submitted to the authorities and the registration process is completed, it takes about 18 weeks until you receive your VAT number. This long waiting time is related to the COVID-19 pandemic and the additional workload for the tax authorities.
You might also need
VAT registration in Italy
Italy is one of online sellers' favorite countries. We can help you with the tax compliance.
VAT registration in Austria
Joining the Amazon Pan-EU or the Amazon Central Europe Programme? Then you also need to register for VAT in this country.
VAT registration in France
A VAT registration in France is required when you store goods in warehouses in France. This includes also Amazon's fulfilment centres.