VAT Registration & Compliance in Valencia – What Foreign Businesses Must Know

🇪🇸 Do You Need to Register for VAT in Valencia?

Yes — if your business in Valencia sells goods or services that are subject to VAT (IVA) in Spain or the EU, you must register for VAT with the Agencia Tributaria (AEAT).

✅ Required for both SL companies and autónomos (freelancers)
✅ Mandatory for most B2B, e-commerce, and service-based businesses
✅ Necessary to file Modelo 303 and collect/reclaim IVA


📋 Who Must Register for VAT in Valencia?

Situation VAT Required?
Selling goods or services in Spain ✅ Yes
Importing or exporting within the EU (intra-community) ✅ Yes
Freelancers billing Spanish or EU clients ✅ Yes
Only exporting outside EU (B2B SaaS, etc.) 🚫 Usually exempt
Invoicing from a Spanish SL to non-residents ✅ Often required (reverse charge may apply)

📌 If you invoice EU clients, you must also register for the VIES (EU VAT system) via Modelo 036.


📝 How to Register for VAT in Valencia

  1. Obtain your NIE (foreigner ID number)

  2. Register your business (SL or autónomo)

  3. Complete Modelo 036 and check the appropriate VAT boxes

  4. Submit to AEAT (in person or online with digital certificate)

  5. Receive confirmation and VIES inclusion if required

We handle the full registration process and setup with AEAT Valencia.


📆 Ongoing VAT Obligations

Filing Type Form Frequency
VAT return Modelo 303 Quarterly
Annual summary Modelo 390 January
EU VAT operations Modelo 349 Monthly or quarterly
Recapitulative ledger Required for certain intra-community supplies As needed

📌 You must file VAT returns even with €0 activity once registered.


🧮 How VAT Works in Spain

Action VAT Rule
Sales to Spanish clients Charge 21% standard VAT
Sales to EU businesses Reverse charge if both are in VIES
Sales to EU consumers Charge VAT unless using OSS scheme
Non-EU exports Often 0% VAT (exempt)
Local purchases Input VAT deductible in Modelo 303

💡 If your business is mostly export-focused, you may be entitled to VAT refunds.


💼 Special VAT Regimes in Valencia

Regime When to Use
Recargo de Equivalencia For retailers, usually applied by suppliers
Módulos Regime For certain small businesses (not SLs)
OSS (One Stop Shop) For cross-border EU B2C e-commerce

We evaluate and apply the optimal VAT structure for your specific activity in Valencia.


❌ Common VAT Mistakes

⛔ Failing to register for VIES before invoicing EU clients
⛔ Charging Spanish VAT when reverse charge applies
⛔ Forgetting Modelo 390 in January
⛔ Claiming VAT on non-deductible expenses (e.g., personal meals, gifts)
⛔ Not filing returns during inactive quarters


🧑‍💼 Our VAT Services in Valencia

Borderless Lawyers offers:

✅ Complete VAT registration and VIES setup
✅ Quarterly Modelo 303 + Modelo 390 filing
✅ Intra-community declarations (Modelo 349)
✅ Support with VAT refunds and audits
✅ VAT invoice compliance and training


📞 Need Help With VAT in Valencia?

We ensure foreign-owned businesses and freelancers are 100% compliant with Spanish and EU VAT law — from registration to refunds.

👉 Contact us to register and manage your VAT in Valencia.

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