VAT Number in Spain: How to Get It, Format & Threshold Limit

Expanding abroad allows retailers to access new markets and significantly increase sales. With a population of nearly 50 million, Spain is a lucrative market with strong purchasing power. If your cross-border sales to EU consumers exceed the EU-wide distance selling threshold or you store goods in Spain, you must register for VAT there. Here’s what you need to know about the VAT Number in Spain.

VAT Number in Spain: Format and Details

Format of the VAT number in Spain:

The VAT number in Spain, known as “Número de Identificación Fiscal” (NIF), is essential for European trade. Previously known as “Código de Identificación Fiscal,” the NIF consists of eleven characters: the country code “ES,” followed by a letter, seven digits, and another letter (format: ESX1234567X) for foreign companies. Domestic companies replace the first letter after the country code with a digit (format: ES12345678X).

• Name: Número de Identificación Fiscal
• Country Code: ES
• Format: ES + 9 characters (first and last can be letters)
• Example: ESX1234567X

When to Register for a VAT Number in Spain

Once your total annual cross-border B2C sales of goods (and certain digital services) to EU consumers exceed the unified EU-wide threshold of EUR 10,000, you are required to charge VAT in the customer’s country of residence. If you sell to Spanish customers and do not use the One-Stop-Shop (OSS), this usually means you need a VAT number in Spain. If you opt for the OSS scheme instead, you can report all your eligible EU distance sales through a single VAT registration in one EU Member State and normally do not need additional local VAT registrations just for these distance sales.

You can find more information in the chapters below or schedule a consultation with our VAT specialists. We will explain when your business needs to register and how our hellotax software can automate your VAT compliance across the EU. Contact us today!

Note: As of 1 July 2021, the EU-wide delivery threshold of EUR 10,000 replaced the previous Spanish threshold of EUR 35,000. Once your total B2C distance sales to all EU countries exceed EUR 10,000 in a calendar year, you must apply the VAT rates of the customer’s country. You can either register for VAT in each relevant country (for example, obtain a VAT number in Spain) or choose the One-Stop-Shop (OSS), which allows you to declare all your eligible EU distance sales via a single VAT registration in one Member State.

For any query, do not hesitate to ask (in Spanish or English) our Free Online VAT TAX Consultant.

VAT Rates in Spain

• Standard VAT rate: 21%
• Reduced VAT rates: 10% and 4%

There are some temporary exceptions when 0% or 5% may apply.

Please read this article for detailed information on VAT rates across the EU member states. These are the rates you will apply once you have a VAT number in Spain and make taxable supplies there.

Storage in Spain

Storing goods in Spain requires VAT registration. Shipments to Spain by non-Spanish traders are considered intra-community and not taxable but must be documented with pro-forma invoices. A Spanish VAT number is mandatory for intermediate storage.

How to Get a VAT Number in Spain

To apply for a VAT number in Spain, you must submit a VAT registration to the Agencia Estatal de Administración Tributaria (AEAT). If your business is established outside the EU (with some limited exceptions, such as Norway), you are required to appoint a fiscal representative in Spain who will communicate with the Spanish tax office on your behalf and submit the application. If your business is established in the EU, you can normally register directly without a representative.

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!

 

Documents Required

Gather these documents early to streamline your VAT ID application process:

• VAT certificates from other EU countries (if available)
• A declaration stating your company does not have a permanent establishment in Spain
• Notarized Power of Attorney for your local agent or representative in Spain
• Articles of Association and Memorandum
• Extract from your national trade register

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

How long does it take to get a Spanish VAT number?

Once your documents are submitted, it generally takes 4 to 6 weeks to receive your Spanish VAT number, depending on how quickly the local AEAT office processes your application. Delays can occur if additional documents or clarifications are requested, so it’s best to prepare all paperwork carefully in advance.

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.

For quarterly filers, VAT returns (Modelo 303) are generally due by the 20th of the month following the end of the quarter, except for the fourth quarter, which is usually due by 30 January of the following year. For monthly filers, VAT returns are generally due by the 30th of the following month. The annual VAT summary return (Modelo 390), if required, must usually be filed by 30 January 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 companies’ VAT numbers. This is especially useful if you are working with a new company and want to ensure 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. 

VAT Number in Spain: Summary for Online Sellers

If your sales to Spain exceed the EU-wide distance selling threshold of 10,000 EUR or if you store your goods in Spain, you need a Spanish VAT ID. If your business is established in the EU, you can normally register directly. If your business is established outside the EU (with some limited exceptions, such as Norway), you will need a local fiscal representative to apply on your behalf.

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