Vat Number in Spain in 2023
The Spanish market is appealing and has considerable purchasing power with around 47 million people living in the nation. Businesses in Spain should register for VAT with the tax authorities in Spain before beginning operations in the country. Business entities in Spain are given VAT identification numbers upon their registration for VAT.
Any business operating in Spain that engages in taxable transactions must be registered for VAT. To conduct some intra-community transactions, organizational bodies that are both traders and non-traders must have a valid VAT number. The “Number de Identificación Fiscal” (NIF), also known as the Spanish VAT number, is a requirement for trading inside Europe. In the world of commerce, sole proprietorships, partnerships, and limited liability organizations all have unique identifiers known as VAT identification numbers. Only businesses are required to have a commercial identification number, known as a VAT number.
This article will provide a basic overview of the VAT number in Spain. It will discuss the structure, process, documentation requirements, and need for the VAT registration number in Spain.
Structure of VAT number in Spain
The VAT registration number in Spain includes eleven characters in all. The traditional country code, “ES,” appears in the initial two positions of the VAT registration number in Spain. Nine digits of the numeral contain one or two alphabetic symbols in the 1st or last, or both 1st and last positions.
The structure for international corporations is as follows: ESX1234567X. The number is preceded by a letter, and 7 numerals, are preceded by an additional letter. Domestic businesses, however, change the letter following the country code to a digit, creating the string ES12345678X.
The structure of the VAT number in Spain is given below:
Name | Número de Identificación Fiscal |
Nation Code | ES |
Structure | ES + 9 digits (letters could be first, last, or first and last) |
Examples | ESX1234567X ESX12345678 ES12345678X |
How is Spanish VAT registration carried out?
Every company that is established in Spain is given a NIF number, often known as a tax identification number. This would serve as the unique identifier for your business. You need to obtain your NIF number before commencing your operation in Spain.
You should enroll with your regional office of the Administración de la Agencia Estatál de Administración Tributaria to request a VAT number in Spain. To submit an application for a VAT identification number in Spain you require a local agent who will communicate on your behalf with the Spanish tax authority. Thereafter, this agent should submit an application to the local branch of the AEAT that oversees him on your behalf.
The steps listed below must be followed in order to register for VAT in Spain:
- If your firm isn’t based in Spain but you intend to conduct operations that are liable for Spanish VAT, you need to complete Form 036 in order to be registered for VAT and acquire your VAT number in Spain. Both incorporated businesses as well as those based overseas are eligible to complete this form.
- After completing the registration application form, you must gather the paperwork needed for VAT registration in Spain. The memorandum of association, incorporation deed, power of attorney, and other legal documents are among the documents that must be gathered.
A non-resident business must have a representative in Spain who serves as their primary contact with the tax authority.
The enrollment procedure can take approximately 6 to 8 weeks depending on how accurately the application was completed.
Documentation requirements for VAT registration in Spain
It is imperative to get in touch with the Spanish tax authorities if your business desires to register for VAT in Spain.
Here are the documentation requirements for VAT registration in Spain:
- VAT registration application form
- The incorporation deed and bylaws of the firm
- Power of Attorney for the administrative agent of the business, which needs to be notarized
- ID proofs or passports
- Evidence that you intend to conduct an operation that is subject to VAT.
- Memorandum as well as Articles of Association of the corporation.
- VAT certificate, if necessary
In order to acquire the VAT number, additional documents may be required by the tax agency. As such, Odint Consulting experts can guide you with the documentation requirements.
Who requires a VAT number in Spain?
Generally speaking, all businesses and legal organizations in Spain are required to be established with the Spanish Commercial Registry and to be VAT-registered in Spain.
The following individuals or organizations are given a VAT number:
- Specialists and enterprises based inside or outside the Spanish VAT zone who conduct intra-EU deliveries of products or intra-EU purchases of products are liable to VAT, irrespective of whether these intra-EU purchases of products are utilized in international companies or professional engagements.
- Natural people who are not enterprises or skilled merchants when they make purchases of items that qualify for VAT within the EU.
- Individuals and firms based in the Spanish VAT zone that acquire services from individuals or firms based elsewhere that are taxable for VAT grounds.
Spanish threshold for VAT registration
The threshold ceiling was set at 35,000 euros for VAT registration prior to the implementation of the EU-wide barrier. The updated limit for VAT registration is 10,000 euros.
If you are an overseas merchant and your annual imports into Spain total more than 10,000 euros, you are required to obtain a Spanish VAT number and record and contribute VAT locally.
Spanish value-added tax rates for products & services
VAT in Spain is due on imports and intra-EU purchases of products and services, as well as on deliveries of products and services produced inside the Spanish VAT region.
Here are the distinct tariffs for the various commodities and services imposed in Spain:
VAT rates | Imposed with products & services |
21% | On usual shipments of products and services, a standard charge of 21% is imposed. |
10% | Lowered rate of 10% is applicable on items including food, water, some pharmaceuticals, and other basics. |
4% | Besides items covered by the lowered rate of 10%, a further lowered rate of 4% is applied to basic requirements, such as bread, milk, books, and medicine. |
0% | Financial services, insurance, and other items are subject to 0% VAT. |
Need for a VAT number for non-residents in Spain
A VAT registration number in Spain for non-residents may be required for a variety of factors.
Here are certain justifications for acquiring the VAT registration number in Spain for non-residents:
- Organize a meeting, a training session, or another event with a gain in Spain.
- To bring in merchandise for Spain.
- To market products to customers online or through catalogs.
- To obtain the Spanish VAT that was paid.
- To implement VAT reverse charges.
For non-Spanish businesses, a legitimate and current VAT number in Spain is required to carry out any of these actions.
VAT compliances in Spain
After you’ve been enrolled for VAT in Spain, you must begin abiding by local regulations in a variety of areas.
This comprises:
- Generating bills with the information disclosed in accordance with Spanish VAT Legislation.
- Keeping up with finances and records, which have a minimum retention period of 10 years.
- Digital bills that have the recipient’s valid signature, verifying their identity and assent.
- Accurate time-of-supply VAT billing to clients for products or services in compliance with Spanish regulations.
Submitting VAT returns in Spain
The time period for filing taxes
The payment term is typically every three months. For businesses that are enrolled in the monthly refund record, for big businesses whose annual revenue exceeded €6,010,121, and for those who take advantage of the special scheme for the group of businesses, these are scheduled on a monthly basis.
Dates for submitting VAT returns by using form 303
The quantity of yearly revenue determines how frequently and when businesses in Spain must submit VAT reports. In reality, the regional tax agency will let you know individually.
- Monthly: If your annual revenues totaled over 6,000,000 euros, you must submit a monthly report.
- Quarterly: If your annual revenues did not exceed EUR 6,000,000, you must submit VAT returns every three months.
- Yearly: All VAT-registered businesses are required to submit VAT returns each year.
By the twentieth day of the month after the maturation term, the VAT return should be submitted online. Around 1st January and 30th January, the filing of returns must be made for the 4th quarter must be submitted.
Monthly submission of returns should be done between January 1st and December 30th of the month that follows the maturity term, or by February 28 in the event of the filing duration pertaining to January.
What situations are exempted from paying VAT?
Here are the situations where VAT is exempted:
- Transference of all corporate resources or creation of a self-sufficient economic body that is able to participate in commercial or specialized operations.
- Distribution of free products, printed materials, or other items of an advertising intent.
- Payments made to employees in kind.
- Complimentary demonstration services are offered to support commercial or professional endeavors.
- A collective agreement’s complimentary perks are provided to employees.
How to search for the VAT registration number in Spain?
VIES, a specifically created tool provided by the European Commission, may be utilized to verify a company’s VAT registration number in Spain. This is particularly helpful when you’re collaborating with a fresh business and wish to ensure that it is legitimate and well-known. Due to the fact that inaccurate VAT numbers of other businesses may also result in audits and issues concerning your business.
Open the European Commission portal and type the VAT number in the VIES VAT number validation field to verify its validity. The program would show the number if it is available and accurate. Yet, there are a variety of explanations for why the number might be presented as missing or inaccurate.
- For purchases made inside the EU, the VAT number in Spain wasn’t even active.
- The VAT number is both nonexistent and unregistered.
- The VAT registration number in Spain hasn’t yet been fully registered.
Conclusion
Any business with a commercial presence in Spain is required to have a valid VAT number as businesses are required to provide their VAT number on bills, correspondence, and other business papers. After verifying your company’s registration, address, documents of establishment, and constitution, as well as a variety of other criteria, the Spanish Tax Administration will grant you a VAT number.
However, obtaining a VAT number and registering for VAT in Spain can be a difficult process. Odint Consultancy can help in this situation. You can get assistance from our specialists at Odint with the process of VAT registration in Spain. Furthermore, they can aid you with the procedures and criteria that will ensure your successful acquisition of a VAT number in Spain.
FAQ’s
You should enroll with your regional office of the Administración de la Agencia Estatál de Administración Tributaria in order to request a VAT number in Spain. Thereafter, this agent should submit an application to the local branch of the AEAT that oversees him on your behalf. In order to register for VAT, Form 036 must be filled out and delivered to the appropriate authority along with the necessary documentation.
The threshold for the entire EU is fixed at 10,000 euros. A corporation is subject to VAT in any EU member state if its yearly revenue reaches 10,000 euros. You must register for Spanish VAT if your items are being stored in Spain.
The VAT registration number in Spain includes eleven characters in all. The traditional country code, “ES,” appears in the initial two positions of the VAT registration number in Spain. Nine digits of the numeral contain one or two alphabetic symbols in the 1st or last, or both 1st and last positions.
In the world of commerce, sole proprietorships, partnerships, and limited liability organizations all have unique identifiers known as VAT identification numbers. Only businesses are required to have a commercial identification number, known as a VAT number. To conduct some intra-community operations, organizational bodies that are both traders and non-traders must have a valid VAT number.
The Spanish VAT standard rate is 21%. On some commodities and services, though, lesser rates of 10%, 4%, and 0% are also applied.
