Spanish VAT rates and VAT compliance
Spanish VAT rates
Spain sets the level of its VAT rates. It does follow some broad rules in this area set by the EU (e.g. the standard VAT rate must be above 15%). These VAT rates should be used by providers of taxable services when selling their goods.
The current rates are:
|Rate||Type||Which goods or services|
|21%||Standard||All other taxable goods and services|
|10%||Reduced||Some foodstuffs; water supplies; certain pharmaceutical products; some medical equipment for disabled persons; domestic passenger transport; intra-community and international transport by road, rail and inland waterways; some social housing; some renovation and repair of private dwellings; agricultural supplies; hotel accommodation; restaurants and catering services; some social services; domestic waste collection; some soft drinks; bars, cafes, night clubs and alcoholic beverages sold therein; take away food; cut flowers and plants for food production; some supplies of new buildings; some construction work on new buildings; admission to sporting events (amateur sporting events only); treatment of waste and waste water; admission to certain cultural services|
|4%||Reduced||Some foodstuffs; some pharmaceutical products; some medical equipment for the disabled; some books (excluding e-books); certain newspapers and periodicals; some social housing; some social services; some construction work on new buildings; some domestic care services|
|0%||Zero||Taxation of some gold coins, ingots and bars; intra-community and international transport by air and sea|
Spanish VAT Compliance
Once registered for Spanish VAT, you will have to start following the local rules in a number of aspects. This includes:
- Issuing invoices with the disclosure details outlined in the Spanish VAT Law.
- Electronic invoices with proper signature, authenticity and agreement by the recipient.
- Maintenance of accounts and records, which must be held for at least 10 years.
- Correct invoicing of customers for goods or services in accordance with the Spanish time of supply VAT rules.
- Processing of credit notes and other corrections.
- Use of approved foreign currency rates.
What is the tax point for Spanish VAT?
The tax point (time of supply) rules in Spain determine when the VAT is due. For imports, it is the time of importation. For goods, it is considered as the point of transfer of title. Any VAT due should then be declared in the subsequent VAT return. The tax point for Spanish services is when performed, or on an accruals basis as ‘enjoyed’.
Need a fiscal representative in Spain?
Non-EU businesses selling in Spain will need to appoint a fiscal representative alongside completing VAT registration and returns.
Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients.
Avalara offers a Fiscal Representative Service as part of its international VAT and GST Registration and Returns Service.
Need help with your Spanish VAT compliance?
Researching Spanish VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.
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- Spanish VAT registration
- Spanish VAT returns
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- Spanish EC Sales Lists (ESL)
- Suministro Inmediato de Información (SII)
- Fiscal representative in Spain
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- Czech Republic
- United Kingdom