Spanish VAT returns

Once registered for value added tax (VAT), businesses operating in Spain must declare all taxable transactions and pay any VAT due. Most VAT-registered businesses submit quarterly VAT returns using Model 303, covering calendar quarters: January to March, April to June, July to September, and October to December. The deadline for these returns is the 20th day of the month following the period end, except for the fourth quarter, which is due by 30 January of the following year.

Businesses with annual taxable turnover in Spain exceeding €6,010,121 on sales of goods, or those registered in the Monthly Refund Scheme (REDEME), VAT groups, or subject to the Immediate Supply of Information (SII) reporting system, must file monthly VAT returns. These are due by the 30th day of the following month.

An annual VAT summary return, Model 390, must also be submitted by 30 January of the year following the reporting period. This is a compiled summary of the year’s returns and is not required for businesses using SII, REDEME monthly filings, VAT groups, or large enterprises over the €6 million threshold.

Any Spanish monthly or quarterly VAT return for a non-resident company must be filed by the 20th or 30th of the month following the end of the reporting period, depending on the filing frequency.

Any VAT due must be paid at the same time as the return submission. Payments can be made via Spanish bank transfer, NRC code, or direct debit from a Spanish bank account. Failure to comply with payment deadlines may result in interest charges and additional surcharges.

Electronic submission is mandatory via the Spanish Tax Agency portal. VAT payments must be made by the same deadlines as the return filings and can be completed using an NRC code, bank transfer, or Spanish direct debit.

When completing a Form 303 VAT return, businesses must include the following:

• Total sales and purchases

• VAT collected (output VAT)

• VAT deductible (input VAT)

• Net VAT payable or refundable

• Import VAT

Input VAT is deductible for registered businesses on qualifying expenses, including the following:

• Imports of goods

• Purchases of goods for resale

• Capital goods

• Travel and accommodation for business purposes

• Advertising or operating costs

Late filing penalties start at 1% per month and can increase up to 15% after 12 months. Late payment may result in additional interest charges ranging from 2% to 5%, depending on the duration of the delay. Additional surcharges of 5%, 10%, or 20% may apply depending on the nature and timing of the non-compliance.

If input VAT exceeds output VAT, the resulting VAT credit can be carried forward to subsequent returns or claimed as a refund in the Q4 return. Businesses under REDEME may request monthly refunds. Refunds are generally processed within six months, though audits can delay this. Late refunds may carry interest.