VAT number Spain: How to get it, Format & Threshold Limit

By expanding abroad, you as a retailer can tap into completely new markets and potentially increase your sales significantly. With a population of almost 50 million, the Spanish market is lucrative and has strong purchasing power. If you exceed the delivery threshold with your sales to Spain or store your goods there temporarily, you must register for the VAT there. We tell you what you need to know about the VAT number in Spain.

Spanish VAT number: Format and what it is called?

The Spanish VAT number is known in Spain as “Número de Identificación Fiscal” (short form: NIF) and is a prerequisite for European trade. Originally, the Spanish VAT number was known as “Código de Identificación Fiscal”.

The NIF consists of a total of eleven characters. The first two are the classic country code, in this case “ES”. This is followed by a letter, seven digits and finally another letter, resulting in the following format: ESX1234567X. This applies to foreign companies. Domestic companies, in turn, replace the letter after the country code with a digit, resulting in ES12345678X.

Format of the Spanish VAT Number:
Name	Número de Identificación Fiscal
Country Code	ES
Format	ES + 9 digits (first and last can be letters)
Example	ESX1234567X

When to register for VAT in Spain

As a foreign seller, there are two main reasons for registering a Spanish VAT number. The first is the exceeding of the Spanish delivery threshold, the second is the temporary storage of goods in Spain. 

Before the introduction of the EU-wide threshold, the threshold limit was 35,000 EUR. The new threshold is 10,000 EUR.

You can find more information in the chapters below. Individual information can be obtained during a consultation call with our VAT specialists. We explain when your business has to register and how to handle and automate VAT duties with our hellotax software in order to stay VAT compliant across the EU. Contact us today!

VAT registration threshold in Spain

If you are a foreign seller and your imports to Spain reach the EU-wide delivery threshold of 10,000 EUR per year, you must get a Spanish VAT number and declare and pay VAT on site. As long as you remain under the annual turnover, you still pay tax on your product sales in your country. 

Note that it takes a certain amount of time from application to receipt of the number. This means that you should plan ahead and apply for the Spanish VAT ID already when it becomes foreseeable that you might reach the delivery threshold and not only when it has already happened. 

Country	Threshold Limit
Spain	10,000 EUR

Note: As of July 1, 2021, the new EU-wide delivery threshold of EUR 10,000 was introduced and has replaced the previous threshold of EUR 35,000. If companies with sales to other EU countries reach the annual turnover threshold of EUR 10,000, they will be liable for VAT in all countries they are selling to. An alternative to registering in all countries is the One-Stop-Shop (OSS).

VAT rates in Spain

• The standard VAT rate is 21%
• The reduced VAT rates are 10% and 4%

For more information on VAT rates in the EU member states, please read this article.

Storage in Spain

Not only the delivery threshold is a reason to register for the Spanish VAT number. If you store your goods in Spain, you also have to register for VAT in Spain. Your shipment to Spain as a non-Spanish trader is called an intra-community shipment and is not subject to tax – nevertheless it has to be proven with the help of pro-forma invoices. 

Prerequisite for the intermediate storage in Spain is a Spanish VAT number. 

How to get a VAT number in Spain

In the event that you reach or exceed the delivery threshold in a timely manner or temporarily store your goods in Spain, you must apply for a Spanish VAT ID. To ensure that the number is available to you in time and that you do not have to interrupt your trade with customers in Spain, you should deal with the topic in good time and prepare yourself for the application.

To apply for a Spanish VAT ID, you must register with your local branch of the Administración de la Agencia Estatál de Administración Tributaria (AEAT). In order to apply for a VAT ID in Spain, you need a local representative who will handle the communication with the Spanish tax office for you. Depending on the location of your representative, it will be decided which branch of the AEAT will be responsible for you. 

If you want to automate your VAT in Spain and if you want us to take care of your VAT registrations, returns, correspondence with the authorities and much more, book a free consultation with us!

What documents are required?

In order to be able to register the VAT ID, various documents are necessary. It is best to gather them early to avoid delays in the application process. 

Documents required to apply for your Spanish VAT ID:

• VAT certificate from VAT IDs you have already received in other EU countries, if available
• Declaration that your company does not have a permanent establishment in Spain
• Power of Attorney of your local agent or representative in Spain. This should be notarized. 
• Articles of Association and memorandum
• Extract of your company from the national trade register

If you want to get more information on the duration of the registration process, please read this article.

How often and when do I have to file VAT returns in Spain?

When and how often companies in Spain have to file VAT returns depends on the amount of annual sales. In practice, however, the local tax office will inform you separately.

• Every month: If you have generated more than EUR 6,000,000 in sales in the past year.
• Every quarter: If you have generated less than EUR 6,000,000 in sales in the past year.
• Annual: All VAT-registered companies must also file annual VAT returns. 

If you do not have figures from the previous year, e.g. because you have a new company, you must estimate your sales. In any case, the tax office will determine when and how often you have to submit your VAT returns.

You must file your VAT returns by the 20th of the month following your accounting period. Annual VAT returns must be filed by January 30 of the following year. 

Find VAT number in Spain

The European Commission offers a specially developed tool called VIES, which can be used to check the VAT numbers of companies. This is especially useful if you are working with a new company and want to make sure that it is legally registered and reputable. Because an incorrect VAT number of other companies can also lead to audits and problems with your company. 

To check the number, simply visit the European Commission website and enter the VAT number there in the VIES VAT number validation. If the number is present and correct, it will be displayed by the tool. However, if the number is displayed as not present or incorrect, this can have several reasons:

• The VAT number was not activated for transactions within the EU.
• The registration of the VAT number is not yet completed.
• The VAT number does not exist. 

If you search for your own number and encounter an error message, you can check with your local tax office to see what the problem is. Sometimes it simply hasn’t been activated yet, for example. 

Summary

If your sales to Spain exceed the delivery threshold of 10,000 EUR or if you store your goods in Spain, you need a Spanish VAT ID. You can get this with the help of a local representative who will apply for it for you. Take care of the representative and the application in time, so that you receive your Spanish VAT number in time.

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