1. 💡 What Is VAT (IVA) in Spain?
IVA (Impuesto sobre el Valor Añadido) is Spain’s version of Value Added Tax (VAT) — a tax on goods and services.
It is applied at each step of the business cycle and must be:
-
Collected from clients
-
Declared to the Spanish Tax Agency
-
Paid quarterly by businesses and freelancers
In Barcelona, any freelancer or company offering taxable services is likely required to register for IVA.
2. 📌 When Do You Need to Register for VAT in Barcelona?
You must register if:
-
You’re a freelancer (autónomo) or business providing services in Spain
-
You sell products or digital services to Spanish customers
-
You invoice more than €10,000/year in intra-EU B2C sales
-
You want to deduct input VAT on business purchases
-
You run a foreign company with a permanent presence in Spain
You must register before issuing your first invoice with IVA.
3. 🔢 What Are the VAT Rates in Spain?
| Type of VAT | Rate | Examples |
|---|---|---|
| Standard | 21% | Most goods and professional services |
| Reduced | 10% | Transport, hotel stays, food |
| Super-reduced | 4% | Basic goods (bread, books, medicine) |
Most professional and consulting services are subject to 21% VAT.
4. 📝 How to Register for VAT in Spain
Steps to register for VAT (IVA):
-
Get your NIE and register as autónomo or open a company
-
Notify Agencia Tributaria using Modelo 036 or 037
-
Choose applicable VAT regime and activity code
-
Obtain an intra-EU VAT number if trading across EU borders
-
Start issuing VAT-compliant invoices
Foreign companies without a Spanish office may also need a tax representative.
5. 📆 How and When to File VAT Returns
VAT is declared quarterly using Modelo 303:
| Quarter | Filing Deadline |
|---|---|
| Jan–Mar | April 20 |
| Apr–Jun | July 20 |
| Jul–Sep | October 20 |
| Oct–Dec | January 30 |
An annual summary (Modelo 390) is also required by January 30.
If you don’t submit on time, penalties and interest apply.
6. 🔍 What Can You Deduct as Input VAT?
You can deduct IVA you’ve paid on:
-
Office rent and utilities
-
Equipment and tech (laptops, phones)
-
Business travel and transport
-
Professional services (lawyers, accountants)
-
Software, SaaS, and advertising
Receipts must be proper invoices with IVA, not simple tickets.
7. ⚠️ Common VAT Mistakes to Avoid
-
❌ Failing to register when required
-
❌ Forgetting to issue VAT invoices
-
❌ Filing late (quarterly or annual)
-
❌ Deducting non-business expenses
-
❌ Not registering for EU VAT number for cross-border sales
Mistakes can lead to fines, audits, or legal issues — especially for digital or international businesses.
8. 👨⚖️ How Borderless Lawyers Can Help with VAT in Barcelona
We support both individuals and foreign companies with:
✔ VAT registration (including intra-EU VAT)
✔ Quarterly and annual filings (Modelo 303, 390)
✔ VAT refund procedures
✔ Cross-border compliance and OSS/MOSS rules
✔ English, French, Arabic, and Spanish support
Contact us today for smooth and penalty-free VAT compliance in Barcelona.