Is fiscal representative compulsory in Spain ?

Spain is a European Union Member State. If your business is established in another European Country appointing a tax agent or VAT representative is voluntary for EU companies carrying out any of the following activities:

Distance selling: deliveries of goods to particular individuals within Spanish mainland or the Balearic Islands territory : voluntary registration or companies over yearly threshold.
Businesses that are liable to submit returns periodically, with right to deduct.
Businesses that pay VAT in Spain and want to request a VAT refund.

Spain yes REQUIRES a tax representative for non EU businesses :

Required for non EU based businesses under the following circumstances:

Businesses VAT liable under MOSS scheme (telecommunication, broadcasting services) and choosing Spain as competent authority.
Businesses entitled to deduct VAT / submit periodical VAT returns
Businesses that pay VAT in Spain and want to request a VAT refund.

When and how do you have to register for VAT as taxpayer?

Registration in Spain is made in two ways. The first layer is a simple identification for tax purposes : you get your TIN (Tax Indentification Number). It may be for customs needs (your business buys/sells within exempted areas or bonded warehouses, or IntraCommunity purchases. It is just as simple and limited to a Tax number.

A second layer is requested for businesses triggering « right to deduct » and this means the business is performing operations for which it has rights and duties :
– the business has to submit periodical returns to report local operations
– the business has no more access to VAT refund through transnational web portal or 13th Directive, but reports VAT on purchases directly on the form(s) (MOD303 / MOD390) provided by in Spain like other established companies.

This « trigger » is activated when :
– you deliver goods to individual particulars in Spain and do not / cannot opt for the Distance Sales Threshold relief.
– you move goods from Spain to another State, being third country or Member state.

In most cases your VAT number in Spain will be similar to ESA12345678

ESN1234567A (non resident – not established)

ESW1234567A (non resident – with establishement).

What is the threshold for deliveries to particulars individuals in Spain ?

Distance selling as per art. 34 of VAT Directive (and taxable persons not entitled to deduct input tax and by non-taxable legal persons as per art. 3(2)(a) of the VAT Directive) :EUR 35,000

while threshold for Intra Community acquisitions is set at EUR 450 000 (acq. exempted pers.)

Once registered for VAT with right to deduct, which VAT should your business apply in Spain ?

Standard VAT rate in Spain is 21%, while intermediate rate is 10%. On the other hand, reduced rate is 4%. See official page for updates.

Application of Article 37 and 109 to 122 of the VAT Directive in Spain : exempt; exempt with credit

Please note that we open access to a detailed table of VAT rates per goods and services in Spain :
See our section https://becompliant.tax/vat-rates-spain

What is the scope of a fiscal representative in Spain?

Fiscal representative should always diagnose your operations in Spain and establish clearly and by written :
1- What your transactions are
2- Where your transactions must be reported : territoriality
3- what are your liabilities in the reporting territory : VAT? ECSL? Intrastat?
4- what are the conditions in which you must charge or exempt VAT in your invoices
5- provide you with a reporting agenda

What form for VAT returns and when to submit in Spain ?

Your fiscal representative in Spain will have to submit periodically on your behalf.
The VAT form you are expected to submit in Spain : MOD303 (qurterly) / MOD390 (yearly)
In Spain, the periodicity of VAT (locally called Impuesto sobre el Valor Añadido (IVA)) is as follows :

Monthly VAT returns in Spain are due 30th of following month, always that if turnover exceeded EUR6,010,121 in the preceding year or if the taxable person is included in the monthly VAT refund procedure(REDEME), or if the company is included in a VAT group, or if the company applies for ISI / SII scheme
Your VAT payment is due : Same as return (except for withdrawal : 25 th).

Quarterly VAT returns in Spain are due 20th of following month, by default
Your VAT payment is due : Same as return (except for withdrawal : 15 th).

Yearly VAT returns in Spain are due 30th of following year.

What are the E/ICSL a fiscal representative submits in Spain ?

The ECSL you are expected to submit in Spain : MOD349 (20th of following month, if activity)

Intrastat

Your statistical declarations (Intrastat) in Spain : 12th of following month

What are the late registration penalties in Spain ?

The following surcharges apply to the late submission of VAT returns or late payment of VAT before any request by the tax authorities:

Delay up to three months: 5% of the tax due

Delay between three months and six months: 10% of the tax due

Delay between 6 months and 12 months: 15% of the tax due

Delay longer than 12 months: 20% of the tax due plus interest

Where to find official information about VAT in Spain

Spain transposed the European Directive into national regulation Law No 37 of 28 December 1992 on VAT (https://www.boe.es/buscar/pdf/1992/BOE-A-1992-28740-consolidado.pdf); Royal Decree No 1624 of 29 December 1992 (https://www.boe.es/buscar/pdf/1992/BOE-A-1992-28925-consolidado.pdf) approving the regulation on value-adde.
The Revenue administration responsible for VAT in Spain is :
Ministry of Finance

(https://www.aeat.es and https://www.mindhap.es).
You can gather more information by contacting the directly :
901 33 55 33, option 3

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