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Summary

Standard VAT rate: 21%
E-Invoicing: mandatory in B2G, permitted but still not mandatory in B2C and B2B
Real-time reporting: large taxpayers must use SII
Digital service tax: no

Compliance and rates

 

VAT number format

All EU member states have a fixed format for their VAT numbers. In Spain, it includes letter, 7 or 8 numbers, letter and the prefix ES (i.e. ESX01234567A).

 

VAT rates

The standard VAT rate in Spain is 21%, with reduced rates of 10% and 4% on certain goods and services. A number of services are exempt from Spanish VAT, such as exportations and international transport.

21% (Standard) – Applies to all taxable supplies, with certain exceptions

10% (Reduced) – Most drinks, hotel services and cultural events

4% (Reduced) – Existential food, books and medicines

0% (Zero) – Exportations and international transport

VAT payments and returns

All businesses with Spanish VAT number must submit periodic VAT reports and payments.

VAT Returns frequency

For all companies that operate in Spain, VAT returns must be submitted on a monthly basis or quarterly basis, depending on the annual revenue of the business entity.

Monthly – by the 30th of the following month if the annual revenue is higher than EUR 50,000.

Quarterly – by the 20th of the following month if the annual revenue is less than EUR 50,000.

Penalties in case of late filings or misdeclarations

Non-registration and/or late registration are subject to fine of EUR 400. It can be reduced to EUR 200 if the filling has been done prior to a requirement from the Spanish Tax Authorities.

For non-payment, a penalty of 50% to 150% of the VAT amount due will be imposed, and for late payment, a surcharge of 5% to 20% plus late interest can be imposed.

Failure to submit or late submission of VAT returns will trigger a fine of EUR 200 in case of a request from the VAT authorities. In case of late submission without request from the VAT authorities, the penalty can be reduced to EUR 100.

The penalty for incorrect filing of a VAT return is EUR 150.

 
Invoice requirements

VAT Invoices must contain at least the following information:

  • date of issuance
  • supplier / issuer data (company name, address, tax number)
  • customer data (address and other data if available, tax number)
  • a unique, sequential number of the invoice
  • full description of goods and services provided
  • quantity of goods and services provided
  • net price per unit
  • the net, taxable value of the invoice
  • any discounts, ancillary costs and expected expenses (if applicable)
  • rate and amount of VAT applicable for the category of goods and services provided
  • the invoice total, gross amount
Penalties for non-compliance with invoicing

Incorrect invoices results in a penalty of 1% of the total amount of all invoices wrongly issued. Failure to issue invoices will trigger a penalty of 2% of the total amount of invoices not issued.

E-Invoicing

Electronic invoicing is mandatory only for B2G transactions, but the Spanish government is already working on its expansion for B2B transactions as well.

At this moment, electronic invoicing is permitted, but not mandatory for B2B and B2C transactions.

Immediate Supply of Information (SII)

Immediate Supply of Information, or Suministro Inmediato de Información (SII) in Spanish, is the tax control system effective from July 1, 2017.

This system requires large taxpayers to maintain their VAT books and invoice records through the AEAT Electronic Office. These submissions must be completed within four working days of the issuance of the invoice and sent to tax authorities as an XML file.

Who is affected by this obligation?
  • Registered in the REDEME (Monthly VAT Refund register)
  • Large companies (annual turnover exceed EUR 6.010.121,04)
  • Company groups for VAT purposes

Turnkey invoice compliance.

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