VAT in Spain
VAT registration in Spain is obviously not the first thing businesses think about when they plan to do business in this country. They usually first deal with the commercial and transport issues but often ignore that applying for a VAT registration in Spain may be an obligation.
Cross border VAT regulations have been deeply modified since the last years and companies having cross border transactions are often confused about European VAT rules. Many B to B sales of goods have to be charged without VAT as it is the case in many other European countries.
VAT rules are however more complex for some B to B services and B to C transactions. Some of your clients may also have specific requests such as being delivered on a DDP basis or to use a consignment stock. This will make your VAT obligations even more complex and require to have a VAT registration in Spain.
Therefore, if your company is about to sell goods or services to Spanish clients, we strongly recommend to have your operations analysed by VAT experts who will tell you if your company needs a VAT registration in Spain.
RMB’s experts can do this for you. RM Boulanger, as an independent company, stays close to its clients and provide them with a day to day VAT assistance.
Our clients have a dedicated contact person who personally takes care of their VAT returns. We try, as much as we can, to immediately answer their questions. Our clients’ requests are most of the time very urgent and they expect from RM Boulanger to be very responsive. Therefore we believe that being independent really makes the difference.
RMB has been assisting companies from all over the world with VAT registration in Spain and also with tailor made compliance services. RMB’s experts will also provide you with the right mentions that need to be shown on your sales invoices.
Are your operations subject to a Spanish VAT registration?
Please find hereafter the main operations requiring a VAT registration in Spain.
You have the obligation to register for VAT in Spain if your company performs the following transactions :
- Intracommunity supplies of goods from Spain to companies within the EU (Intracommunity supplies).
- Exports of goods from Spain to companies outside the EU.
- Holding goods in a warehouse in Spain as stock for resale.
- “Supply and install” services over 12 months.
- Distance selling to private Spanish consumers e.g. ecommerce retailing.
- Services performed to private individuals on Spanish territory.
If your company has or plan to have one these cross border transactions, your company must apply for a VAT registration in Spain.
VAT rates applicable in Spain
1. Standard VAT rate
Spanish standard VAT rate is 21%.
2. Reduced VAT rate
Spanish VAT rate is 6% and applies on (list is not exhaustive) :
- Supply of foods and beverages,
- Hotel accommodation,
- Passenger transports,
- Health care.
3. Super reduced VAT rate
Consumers benefit from a super reduced VAT rate applying on (list is not exhaustive) :
- Bread, flour, milk...,
- Magazines and books,
VAT registration process
The VAT registration process can be done quite quickly in Spain to the condition that all the documents and information required by the Spanish Tax Authorities are all complete and accepted. The preparation and collection of the documents will however take quite a lot of time, as many of them have to be translated into Spanish by a certified translator and also have to be apostilled.
RMB’s experts will of course be happy to assist you with the preparation of the documents required for the VAT registration as well as with the filing of your Spanish VAT returns. This will, for sure, help your company to save time and energy!