Spain joined the European Union in 1986 and also became a member of the Eurozone in 1999, adopting the currency of the Euro.

VAT rates in Spain

The standard rate of VAT is 21%, and reduced rates of 4% and 10% are available.

VAT registration in Spain

There is no VAT registration limit in Spain for either established or non-established businesses.

Distance sales have a limit of €35,000 for VAT registration.

The format for a VAT identification number is: ES W/N 123456789. Every company must hold a number like this in order for accurate taxation.

VAT returns can be submitted monthly or quarterly and annual returns are also required.

Are there any Intrastat thresholds in Spain?

Yes. There is a limit of €250,000 for both arrivals and dispatches.

VAT recovery in Spain

  • Is VAT recovery permitted for non-established non-EU businesses?

Yes, but only on a reciprocity basis.

  • Are there any non-VAT recoverable expenses?

Yes, recovery of input tax is restricted on certain items, i.e. business entertainment.

Reverse charge applies to the majority of cross border services. An extended charge applies to any Spanish VAT registered customer supplied by a non-established business.

Requirements and regulations in Spain

Any company established in a non-EU member country must appoint a tax representative to register for VAT in Spain.

Use and enjoyment rules apply in Spain.

The period of VAT recovery by tax authorities has a timescale of 4 years.

Please contact us for further information about paying taxes in Spain, and a member of our team will be happy to help you.

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