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 Mini One-Stop Shop below for more information.

Mini One-Stop Shop

The optional simplification measure called the “Mini One-Stop Shop” (MOSS) with respect to digital services, telecommunication services and broadcasting services supplied in a B2C context. The supply of these services is generally considered as taking place in the Member State of the customer, not the Member State of the supplier.The MOSS scheme allows all taxable persons supplying digital services, telecommunication services or broadcasting services to nontaxable persons in EU Member States in which they do not have an establishment, to account for the VAT due on those supplies via a web portal in the Member State in which they are identified. The MOSS allows qualifying taxable persons to avoid registering in each Member State of consumption. The MOSS simplification is available both for taxable persons established in the EU and outside the EU. The MOSS generally mirrored the scheme that was in place for non-EU established suppliers of electronically supplied digital services, telecommunication services or broadcasting services supplied to final consumers. Persons already registered under the pre-existing scheme for electronically supplied digital services, telecommunication services or broadcasting services, should retain their existing individual VAT identification numbers for the purposes of the MOSS.

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.