Spanish VAT reverse charge
The reverse charge mechanism is designed to reduce the frequency with which companies trading across Europe must VAT register. It works across the EU. Spain uses the reverse charge system less than most other EU states.
It allows any transactions to be recorded through the VAT return of the customer, so alleviating the need for the foreign supplier to VAT register in Spain.
When is the Spanish VAT reverse charge used?
The reverse charge mechanism is applied in the following circumstances:
- Buying and selling goods in Spain if the original supplier and customer are Spanish VAT registered
- The supply of services to a Spanish VAT registered business (2010 VAT package).
- Supply of certain types of power.
- Other various minor goods.
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.
Latest Spanish news
March 03, 2019
The Spanish tax authorities are warning UK companies of the obligation to appoint a local fiscal representative for compliance and reclaims in the event of a no-transition deal Brexit on 29 March 2019...
January 25, 2019
The European Commission (EC) has proposed switching from unanimous to majority voting on EU VAT and other tax policies. The aim is to progress fiscal reforms which face immovable opposition from just a limited number of member states...
January 09, 2019
The EU VAT Directive has been updated from 1 January 2019 to introduce a voluntary generalised reverse charge measure on domestic transactions in member states.
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