If a company not established in Spain is providing ‘taxable supplies’ of goods or services in Spain, it may have to obtain a non-resident VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.
It is important that all businesses with any commercial activity in Spain assess their compliance obligations and register prior to commencing taxable transactions if applicable.
There are various scenarios that would trigger an obligation to register for VAT in Spain. Some of the most common examples are:
If you are currently, or plan to conduct any of the above (or similar) transactions in Spain, you should contact us immediately for a complimentary consultation.
Monthly or quarterly
Yes
Monthly
Yes
No
Services provided by a non-established to a VAT registered customer in Spain are subject to the reverse charge and the customer accounts for the VAT. Please contact us if you would like details of how the extended reverse charge applies in Spain.
A business established in a country outside the EU must appoint a tax representative to register for VAT in Spain.