VAT in Spain guide

VAT rates

The following are the VAT rates in Spain:

• Standard rate: 21%
• Reduced rates: 4% and 10%

The standard rate of VAT applies to all supplies of goods or services, unless a specific measure provides for a reduced rate or exemption.

Spanish VAT for digital service providers

In case of digital services, telecom services or broadcasting services supplied in a B2B context, the place of supply is the place where the recipient is established. No Spanish VAT should be charged, and reverse charge applies unless supplier and customer are established in Spain. In case of digital services, telecom services or broadcasting services supplied in a B2C context we refer to the section on the One-Stop Shop below for more information.

One-Stop Shop

On 1 July 2021 EU has introduced a so-called “One-Stop-Shop” (OSS) system which has replaced a previously applied “MiniOneStopShop” (MOSS) system. OSS has extended the scope of MOSS from digital goods and services to all goods and services sold B2C in the EU. OSS is an electronic portal that simplifies VAT compliance for online sellers, i.e., online businesses that sell goods and/or services in the EU are now only required to register for VAT in one EU country for all their B2C sales in the EU. If such sellers’ B2C sales in EU are above the applicable threshold, which is 10.000,00 EUR throughout the EU, businesses are liable to charge, collect and remit VAT in the Member State where their B2C buyers are located, instead of the Member State or country of their incorporation, i.e. online sellers have to apply the VAT rate of the Member State where the goods are dispatched or where the services are supplied. AS each EU Member State has an online portal where businesses can register for OSS and submit their VAT returns in one Member State for their B2C sales throughout the EU, it is estimated that VAT compliance costs will be significantly reduced. Registration in the OSS system is available for both – taxable persons established in the EU and outside the EU.

VAT Registration Spain

The obligation for VAT registration in Spain might be triggered in different ways. Here is the the list of most common scenarios:

• Importing goods into Spain from non-EU countries;
• Buying and selling goods in Spain (excluding domestic reverse charge);
• Selling the goods from Spain to customers in other countries (B2B or B2C);
• Acquiring goods in Spain from another EU country (Intra-community acquisitions);
• Holdinging and storing inventory in Spain for selling, distribution or consignment;
• E-commerce sales of goods to Spanish consumers, subject to Distance Selling VAT registration thresholds;
• Organising events in Spain where attendees or delegates are paying admission.

Late – registration penalties

A penalty of EUR 400 may be assessed for late registration. This penalty may be reduced to EUR 200 if the taxpayer registers voluntarily without receiving a prior request from the Spanish tax authorities.

Fiscal representative Spain

Non-EU business which are selling in Spain will have to appoint a fiscal representative for the VAT registration and compliance in Spain.
Fiscal representative is jointly liable for the VAT compliance duties for non-EU companies.
Need a Fiscal Representative Service in Spain? 1StopVAT can provide it together with other Global VAT/GST/Sales tax compliance services.