🇪🇸 What Is VAT in Spain and Who Needs to Register?
In Spain, VAT is known as IVA (Impuesto sobre el Valor Añadido) and applies to most goods and services. If your business operates in Spain or sells to Spanish clients, you may be required to register for VAT and file returns regularly.
✅ VAT is mandatory for most SL companies
✅ Autonomous (freelancers) may also need to register
✅ E-commerce, SaaS, and service businesses must comply
✅ Intra-EU and international rules may apply
📝 Who Must Register for VAT in Spain?
You need to register for VAT if:
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You sell taxable goods or services in Spain
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You import goods from outside the EU
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You make intra-EU acquisitions
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You provide B2C digital services to Spanish consumers
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You are a non-resident company with operations in Spain
💡 Even if you’re not based in Spain, VAT registration may be required if you operate there.
📋 How to Register for VAT in Spain
To register for VAT:
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Incorporate an SL or register as an autónomo
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Apply for a NIF (Número de Identificación Fiscal)
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Submit Modelo 036 to declare economic activity
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Choose your VAT regime (general or simplified)
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Receive your CIF and VAT number from the tax authority
📌 You’ll be listed as an “empresa con actividad económica” and must begin regular VAT filings.
📊 Spanish VAT Rates
| Type of Goods / Services | VAT Rate |
|---|---|
| General rate (most services/products) | 21% |
| Reduced rate (food, transport) | 10% |
| Super-reduced rate (books, medicine) | 4% |
| Exempt (education, healthcare, rent) | 0% / exempt |
✅ You must clearly indicate the type and rate of VAT on every invoice.
🧮 How to File VAT Returns in Spain
| Return Type | Form / Modelo | Frequency |
|---|---|---|
| Quarterly VAT return | Modelo 303 | Apr / Jul / Oct / Jan |
| Annual summary | Modelo 390 | January each year |
You must report:
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Total sales (with and without VAT)
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Input VAT (from purchases)
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Output VAT (collected from clients)
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Net amount due or refundable
💡 Businesses can deduct input VAT on business-related expenses if correctly invoiced.
📎 Invoice Requirements for Spanish VAT
Every VAT invoice must include:
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Full legal name and NIF of both client and issuer
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Date and invoice number
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Description of goods/services
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VAT rate and total
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Reverse charge wording if applicable (intra-EU B2B)
Incorrect invoices may invalidate deductions or trigger audits.
🔄 Reverse Charge & Intra-EU Transactions
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B2B EU Sales (client has VAT ID): Reverse charge applies
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B2B EU Purchases: Declare both input and output VAT under reverse charge
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Must file Modelo 349 for EU operations
📌 This allows VAT-free cross-border transactions but must be documented precisely.
⚠️ Common Compliance Risks
⛔ Not registering for VAT when required
⛔ Filing Modelo 303 late or incorrectly
⛔ Failing to include mandatory invoice info
⛔ Incorrect use of reverse charge
⛔ Assuming your accountant is handling everything
🧑💼 Our VAT Services for Foreign Businesses
At Borderless Lawyers, we provide:
✅ VAT registration (Modelo 036 + CIF request)
✅ Setup of invoicing & billing structure
✅ Quarterly + annual filings (Modelos 303, 390, 349)
✅ EU compliance & cross-border invoicing
✅ Audit-proof documentation and controls
✅ Support for e-commerce, SaaS, and service firms
📞 Get VAT Registered in Spain with Legal Clarity
Whether you’re launching a new SL, scaling operations, or selling cross-border, we help you stay VAT compliant and audit-proof from day one.
👉 Contact us to handle your VAT registration and returns in Spain.