Operating a business in Spain or conducting transactions with Spanish customers triggers specific tax obligations. For foreign companies, understanding VAT registration in Spain is critical to avoid penalties, customs delays, and platform restrictions. 

This Spain VAT registration guide provides a step-by-step overview of Spain’s VAT rules, ensuring compliance and smooth entry into the Spanish market.

Why Non-Resident Firms Must Register for VAT in Spain?

Operating a business in Spain or transacting with Spanish customers creates specific tax obligations. Understanding VAT registration requirements is essential to avoid:

  • Penalties and Fines for late registration or incorrect VAT filings.
  • Blocked Marketplace Sales, as platforms like Amazon or eBay require a valid Spanish VAT number.
  • Customs Holds, which delay goods until tax issues are resolved.

When Does a Foreign Business Need to Register? Key Triggers

Foreign businesses must register for VAT in Spain when they carry out taxable activities that create a “nexus” with the country. Below are the most common triggers that require VAT registration:

  • Holding Inventory or Using a Spanish Warehouse: If your goods are stored in a warehouse or fulfillment center in Spain, you are required to register for VAT.
  • Importing and Selling Goods Locally: When your business imports goods into Spain from outside the EU and sells them within the country, VAT registration for non-resident businesses Spain is mandatory from the first transaction.
  • Selling Digital Services to Spanish Consumers: Non-EU and EU businesses offering digital services to individual consumers in Spain must register.
  • Marketplace Facilitation (Deemed Supplier Rules): If you sell via a marketplace (like Amazon or eBay), and you’re a non-EU seller, the marketplace may be deemed the supplier but you may still be required to register for VAT depending on your setup.
  • Participating in Trade Shows or Temporary Sales Events: Selling products or providing chargeable services during a trade fair, exhibition, or pop-up event in Spain can trigger VAT registration, especially if you issue invoices or collect payment on-site.

Registration Thresholds & Nexus Tests

Foreign companies, both EU and non-EU, must register for VAT in Spain as soon as they:

  • Import goods into Spain
  • Store inventory in Spanish warehouses or fulfillment centers
  • Sell goods locally
  • Provide digital services to Spanish consumers

Special Digital Services Rule (OSS / Non-Union OSS)

Businesses supplying digital services to Spanish consumers may register for VAT in Spain or use the One-Stop Shop (OSS) scheme if established in the EU. Non-EU businesses can opt for the Non-Union OSS, allowing them to report VAT due in Spain from a single registration point.

  • OSS threshold is €10,000 combined EU-wide for EU-based suppliers (once exceeded, local VAT rates apply).
  • Non-EU suppliers must register from the first sale via Non-Union OSS or directly in Spain.

Low-Value Import VAT Rules (IOSS)

Since July 1, 2021, the €22 VAT exemption on small consignments has been removed across the EU. All imports to Spain, regardless of value, are now subject to VAT. 

Spain VAT Number Format Explained

In Spain, the VAT number is known as the Número de Identificación Fiscal para el IVA (NIF-IVA) and follows a specific alphanumeric structure. It typically includes:

  • Prefix: ES (the country code for Spain)
  • 9 characters total – a mix of numbers and letters

The general structure is:

ESX1234567X

  • The first character can be a letter (usually indicating the type of entity).
  • The next 7 digits are a unique identifier assigned to the business.
  • The final character is a control digit or letter used for validation.

Examples:

  • ESB12345678 – Common format for Spanish companies
  • ESA08017535 – Format used for legal entities or foreign businesses

You can validate a Spanish VAT number using the EU VIES tool.

Is a Local Tax Agent or Fiscal Representative Required?

Spanish VAT law distinguishes between EU and non-EU businesses when it comes to fiscal representation requirements.

  • EU Businesses: If your company is established within the EU, you do not need to appoint a fiscal representative. 
  • Non-EU Businesses: If your company is based outside the EU, you are generally required to appoint a Spanish fiscal representative to handle VAT matters on your behalf. This representative:
  • Must be established in Spain
  • Assumes joint liability for the correct filing and payment of VAT
  • Often requires a Power of Attorney (POA) and possibly a bank guarantee or security deposit, especially when applying for import VAT deferment

Special Schemes & Simplifications

Spain offers several VAT simplification schemes aimed at reducing the administrative burden on foreign businesses, such as:

1. Import VAT Deferment (DIVA Scheme)

Foreign companies importing goods into Spain can apply to defer the payment of import VAT and instead account for it on their VAT return. This improves cash flow and simplifies customs processing.

Note: Import VAT deferment is only available to businesses filing monthly VAT returns.

2. Import One-Stop Shop (IOSS)

For businesses selling low-value goods (≤ €150) shipped from outside the EU to Spanish consumers, the IOSS allows sellers to:

  • Collect VAT at checkout
  • Declare and remit VAT through a single EU registration
  • Ensure faster customs clearance

IOSS avoids VAT being collected at the border, reducing customer complaints and delivery delays.

3. Consignment Stock Simplification

Foreign suppliers transferring goods to consignment stock in Spain (e.g., for a specific customer or warehouse) can avoid immediate VAT registration, provided the stock is sold within 12 months and all conditions under EU VAT simplification rules are met.

Step-by-Step: How to Register for VAT in Spain

Here’s a clear step-by-step breakdown of how to register for VAT online Spain:

1. Check If VAT Registration Is Required

Assess whether your business activities in Spain, such as imports, storing inventory, B2C sales, or digital services, trigger a mandatory registration.

2. Gather the Required Documentation

Collect all supporting documents needed for the application, including:

  • Certificate of incorporation
  • Business ID/passport of directors
  • Description of business activities in Spain
  • Power of Attorney (if appointing a representative)

3. Complete the Application Form (Modelo 036)

Fill out Form 036 (Modelo 036), the standard tax registration form used for VAT and corporate tax registration in Spain. This form can be completed online via the Agencia Tributaria portal.

4. Submit the Application

Submit Form 036 along with the required documentation:

  • Online via the tax portal (for EU firms or those with Spanish digital certificates)
  • In person or by post via your fiscal representative (required for most non-EU firms)

5. Await Confirmation & VAT Number

Once approved, the Spanish tax authority will issue a Spanish VAT number (NIF-IVA). Processing time is typically 2-4weeks, depending on application completeness and whether a fiscal rep is involved.

Required Documents Checklist

To successfully register for VAT in Spain, foreign businesses must prepare and submit a set of supporting documents, such as.

  • Certificate of Incorporation
  • Valid Business Registration Extract
  • Director(s)’ IDs or Passports
  • Description of Business Activities in Spain
  • Power of Attorney (POA)
  • Spanish Tax Form – Modelo 036
  • Bank Certificate or Statement (if requested)
  • VAT Certificate from Home Country (for EU businesses)

Note: Documents must be submitted in Spanish, or accompanied by a certified translation into Spanish.

Processing Time & Government Fees

Understanding the administrative timelines and potential costs associated with VAT registration for foreign companies in Spain helps businesses avoid delays and budget accurately.

  • Processing Time: The Spanish tax authority typically processes VAT registration applications within 2 to 4 weeks after receiving all required documents. Delays may occur if documents are incomplete or incorrectly translated
  • Government Fees: No government fee is charged for applying for or receiving a VAT number in Spain.

Post-Registration Obligations

Once your business is registered for VAT in Spain, it must comply with ongoing tax obligations. These include timely filings, accurate payments, proper invoicing, and diligent record-keeping.

Filing Frequency

The Spanish Tax Agency determines your filing schedule based on turnover and business profile:

  • Monthly Filings: Required if:
    • You opt for import VAT deferment (Article 167)
    • Your turnover exceeds €6,010,121.04 annually (large taxpayer status)
  • Quarterly Filings: This is the default for most foreign SMEs operating in Spain.
  • Annual Summary (Modelo 390): All VAT-registered businesses must submit an annual recap return.

Payment Deadlines

  • VAT returns and payments are due by the 20th day of the month following the reporting period.
  • For monthly returns, both the return and payment are due by the 20th of the next month (e.g., January return due February 20).
  • Late payments may result in:
    • Interest at the legal rate (currently 4% annually)
    • Fixed or percentage-based administrative fines

E-Invoicing & SII (Immediate Supply of Information)

  • Large companies and those on monthly filings are required to use the SII system, which involves submitting invoice data to the tax authority within 4 days of issuance.
  • The use of structured electronic invoicing is increasing and will become mandatory for B2B transactions in the near future under Spain’s upcoming e-invoicing reform.

Record-Keeping Requirements

  • All VAT records (invoices, returns, import/export documentation) must be stored for at least 6 years.
  • Records must be available in Spanish (or translated) upon request during audits or inspections.

Claiming Input-Tax Credits & Refunds as a Non-Resident

Foreign companies registered for VAT in Spain can claim input VAT on eligible business expenses incurred within the country. Non-resident tax registration Spain can deduct input VAT on business-related expenses such as:

  • Import VAT
  • Warehouse fees
  • Local services (e.g., logistics, marketing, legal)
  • Business travel and accommodation (if directly related to taxable activity)

To claim a VAT refund or input tax credit, businesses must retain and submit the following documents:

  • Valid VAT invoices in the name of the business
  • Proof of payment
  • Import customs declarations (DUA) if reclaiming import VAT
  • Description of the business activity in Spain
  • Power of Attorney (if applying via representative)

All documents must be in Spanish or translated by a certified translator.

Refunds are usually processed within 4 to 8 months, depending on the type of refund and volume of claims.

Penalties for Late Registration or Non-Compliance

Failing to register for VAT or meet your tax obligations in Spain can result in severe financial, legal, and operational consequences for foreign businesses, such as:

  • Late Registration Fine: Under Article 198 of the Spanish General Tax Law, late VAT registration triggers a penalty of €400, reduced to €200 if voluntarily submitted before any request from the tax authorities.
  • Late Filing or Non-Filing of Returns: A €200 fine applies for late filing; reduced to €100 if corrected voluntarily before official notification. Incorrect returns incur a €150 penalty.
  • Late Payment Penalty: For unpaid or late VAT payments, 50%–150% surcharge is levied based on delay and seriousness. Interest charges (4% annually) from due date until payment are levied as well.

Deregistration & VAT Number Changes

There are circumstances under which a foreign business may need to cancel its Spanish VAT registration or update its registered details. The Spanish Tax Agency provides formal procedures for both.

Your business should apply for VAT deregistration in Spain if:

  • You cease taxable operations in the country
  • Your Spanish turnover drops to zero or remains inactive for several quarters
  • Your goods are relocated or removed from a Spanish warehouse permanently
  • You transfer the business to another entity

To deregister the business, simply:

  1. Submit Form Modelo 036 with the relevant box ticked to indicate cessation of activity.
  2. File a final VAT return for the last reporting period.
  3. Ensure all VAT liabilities are cleared before submission.
  4. If you have a fiscal representative, they must also be notified and may assist with the process.

The declaration must be submitted within 1 month of ceasing taxable activity.

Updating VAT Details

If your business continues to trade but needs to update its information (e.g., company address, bank details, business activity), you must:

  1. Use Modelo 036 again and fill in the relevant update sections.
  2. Submit supporting documents if required (e.g., new articles of association, amended certificate of incorporation).
  3. Notify your fiscal representative to keep tax records aligned.

Conclusion

From understanding triggers like import activity and local warehousing to complying with post-registration obligations like timely filings and e-invoicing, the Spanish tax system requires strict adherence.

With the right guidance and documentation, foreign companies can unlock seamless access to the Spanish market while staying fully compliant.

Need help registering for VAT in Spain?

Commenda specializes in simplifying cross-border VAT compliance. Book a free demo today and let us help you handle Spanish VAT registration.

FAQs: Foreign Business VAT in Spain

1. Do non-resident remote sellers need to register for VAT in Spain if they only supply digital services?

Yes. If you supply digital services to Spanish consumers, VAT registration is required. EU businesses may use the OSS scheme, while non-EU businesses can register via the Non-Union OSS.

2. What is the sales-threshold that triggers mandatory foreign business VAT registration in Spain?

Spain applies a zero threshold for non-resident businesses. Registration is required from the first taxable activity, such as local sales, inventory storage, or importing goods.

3. How long does the VAT number application process take for a company with no local branch?

VAT registration in Spain typically takes 2 to 4 weeks once all documents are correctly submitted. 

4. Can I reclaim input tax in Spain without a resident tax representative?

EU businesses can reclaim VAT via the EU 8th Directive portal. Non-EU businesses must appoint a fiscal representative and have a reciprocity agreement with Spain to claim input VAT.

5. Which documents are required to open a non-resident VAT account in Spain?

Typical documentation includes:

  • Certificate of incorporation
  • Director ID or passport
  • Power of attorney (if using a fiscal representative)
  • Proof of Spanish business activity (contracts, warehouse, or sales invoices)
  • Completed Modelo 036 (Form 036)

6. What penalties apply for late or missed VAT filings by overseas entities?

Penalties include:

  • €200 per missed return (reduced to €100 if self-corrected)
  • Late registration fines of €300–€600
  • Late payment penalties from €50 to €6,709
  • Interest at 4% annually

Serious cases may involve director liability and import blocks.

7. Is there a simplified or low-value import scheme for cross-border e-commerce sellers?

Yes. Spain participates in the Import One-Stop Shop (IOSS) scheme for goods ≤ €150 shipped from outside the EU. It allows sellers to collect and remit VAT at checkout and simplifies customs clearance.

8. How do currency conversions affect VAT payments from foreign bank accounts?

All VAT filings and payments must be made in euros (EUR). When issuing invoices in another currency, the European Central Bank (ECB) exchange rate on the taxable supply date must be used for conversion.

9. Can multiple marketplaces share one Spanish VAT registration, or must each seller register separately?

No. Each legal entity must obtain its own Spanish VAT number. Marketplaces like Amazon or AliExpress cannot share a VAT number with third-party sellers.

10. What are the annual costs of appointing a fiscal representative in Spain, and can Commenda handle this role?

Fiscal representative fees vary, typically between €1,000–€3,000 annually, depending on complexity. Yes, Commenda can act as your licensed fiscal representative and manage registration, filings, and compliance.

11. How do I cancel or deregister my Spanish VAT number if my turnover drops below the threshold?

File a deregistration request via Modelo 036 with supporting documents. You must also submit a final VAT return, clear outstanding liabilities, and wait for confirmation from the Spanish Tax Agency.

12. Does the reverse-charge mechanism remove the need for VAT registration on B2B services?

Yes. For cross-border B2B services, the reverse-charge mechanism usually applies. This means the Spanish recipient accounts for VAT, so non-resident suppliers don’t need to register if they provide no other taxable activities in Spain.