Spain – Comprehensive VAT Guide (2026)

2. Local VAT Term

3. VAT Rates

• 10% Rate (Reduced IVA): The 10% rate is applied to a broad range of items, including:
  • Most food and beverages for human consumption (except those considered basic necessities, which may be at 4%, and except alcoholic drinks and sweetened beverages – see below). For example, meat, fish, bread (see 4% for basic bread), bottled water, soft drinks without added sugars, and restaurant/catering services are 10%. Restaurant and bar services (food consumed on premises or takeaway meals) carry 10% IVA. Non-alcoholic beverages generally are 10%, but sugary soft drinks and juices with added sugar are specifically taxed at 21% (to discourage sugar consumption). [sede.agenc…ria.gob.es] [fonoa.com]
  • Hotel and tourist accommodation (short-stay accommodations, hotels, guesthouses) are 10%.
  • Passenger transport within Spain (train, bus, domestic flights, taxi fares) at 10%. (International passenger transport can be exempt or zero-rated as international services – see Section 3.3).
  • Pharmaceutical products for animal use (veterinary medicines) are 10%. (By contrast, human medicines are exempt or zero-rated – see Section 3.3.) [sede.agenc…ria.gob.es]
  • Medical equipment for disabled persons (wheelchairs, prosthetics, certain hearing and vision products like prescription eyeglasses) – many qualify for 10%. COVID-related products like surgical masks and in vitro testing kits have been taxed at 4% or 0% under temporary measures, but generally medical devices for human health not explicitly listed as exempt might be at 10%. [sede.agenc…ria.gob.es]
  • Domestic passenger air or rail travel (with origin and destination in Spain, including the Balearic Islands) is 10%. International travel is exempt or zero-rated (as international services).
  • Admission to cultural events and entertainment: e.g. theater, concerts, museums, cinema tickets, amateur sporting events are 10% (many cultural services were moved from 21% to 10% in recent years to support the sector). Professional sporting events remain standard-rated unless otherwise exempt. [sede.agenc…ria.gob.es]
  • Certain personal care services: e.g. hairdressing was previously at 21% and remains so as of 2026 (though proposals exist to reduce it); however, some social community services not exempt may be 10%. [sede.agenc…ria.gob.es]
  • Renovation and repair of housing (when certain conditions are met, e.g. private dwellings older than 2 years, and material cost under 40% of the invoice) are 10%. Sales of newly constructed homes (first transfer by a developer) also generally qualify for 10% IVA (if sold to individuals for use as a dwelling). [sede.agenc…ria.gob.es]
• 4% Rate (Super-Reduced IVA): This is Spain’s “super-reduced” rate for especially essential goods. It covers:
  • Basic staple foods: e.g. bread (standard bread), flour for bread, milk (unprocessed or pasteurized milk), cheese, eggs, fruits, vegetables, legumes, cereals (unprocessed) – these core food staples are at 4%. (Non-basic foods and processed or sugary items are usually 10% as noted above, or 21% for alcoholic/sugary beverages.) [marosavat.com] [sede.agenc…ria.gob.es]
  • Medicines for human use: Medicinal products, prescription pharmaceuticals for human health are taxed at 4% (many were formerly exempt but Spain now applies 4% to most prescription meds). [fonoa.com]
  • Healthcare products: e.g. feminine hygiene products (menstrual pads, tampons) and non-hormonal contraceptives were moved from 10% to 4% from 2023 as part of efforts to eliminate the “tampon tax”.
  • Books, newspapers, and magazines (on physical support or digital format) are 4%. Spain applies the reduced rate equally to ebooks and electronic publications following EU rules allowing it. [fonoa.com]
  • Social housing: certain government-subsidized housing qualifies for 4%.
  • Equipment for persons with disabilities: some items specially designed for persons with physical or sensory disabilities (e.g. certain prosthetics) are at 4%.
  • Other essentials: e.g., certain infant foods are 4% (baby formula, etc.), and certain public service broadcasts. This is not an exhaustive list, but indicative of categories included at 4%.

• Exports of goods to non-EU countries: 0% IVA (with full input tax credit) on exported goods. Proof of export (customs documents) is required to apply this treatment. [fonoa.com]
• Intra-Community supplies (ICS): Sales of goods dispatched from Spain to a VAT-registered buyer in another EU Member State are taxed at 0% (exempt with credit) if the buyer’s valid VAT number is obtained and the goods are transported out of Spain. The buyer then self-assesses VAT in their country. Proper EC sales listing (see Section 23.1) and transport proof are required to support 0% rating. [fonoa.com]
• Certain international services: e.g. services directly connected to exports, transport of goods in international trade, work on goods to be exported, and services to diplomatic missions or international bodies can be zero-rated under specific conditions (or exempt by international agreements). Spain also applied a temporary 0% to COVID-19 vaccines, tests, and medical equipment from 2020–2022 in line with EU allowances.

• Healthcare and medical services (by licensed medical professionals and hospitals). [fonoa.com]
• Education (public and private schooling, university courses, vocational training) when meeting statutory requirements.
• Financial and insurance services (e.g. loans, credit, insurance, certain banking services). [fonoa.com]
• Real estate: supplies of used real property (sales of second-hand buildings/land generally exempt), and most rentals of dwellings are exempt (with no input recovery, although option to tax is available for some commercial real estate rentals).
• Postal services by the public postal service, and certain public interest services (cultural services by non-profits, etc.).
• Note: Some traditionally exempt areas have special rules. For instance, travel agency services fall under a special margin scheme (TOMS) rather than being exempt; and passenger transport outside the EU is treated as exempt with credit (akin to zero-rate for international travel).

• Basic Food VAT Cuts (2023–2024): To mitigate high inflation on essential groceries, Spain implemented temporary zero and reduced rates on staple foods in 2023–24. Starting 1 January 2023, basic staples (bread, milk, cheese, eggs, fruits, vegetables, cereals) were zero-rated (0%). This 0% rate was extended through 30 September 2024. From 1 October 2024, a 2% VAT was imposed on these items, and from 1 January 2025 the rate reverted to 4% (the normal super-reduced rate). Olive oil, initially included at 0%, rose to 5% from 1 January 2025 (Spanish law now classifies olive oil as an essential food, assigning it a permanent 5% rate – a new rate bracket enabled under updated EU rules). Dried pasta had a temporary 5% rate in early 2024, which increased to 7.5% for Q4 2024, with an expectation to return to 10% in 2025. These changes mean that as of 2025, most basic foods are again 4%, though a few (like olive oil) are at 5%, an intermediate rate Spain introduced using new EU flexibility. Consumers and businesses needed to adapt pricing and systems repeatedly during these periods. [sovos.com], [sovos.com] [pageroab.zendesk.com] [marosavat.com] [marosavat.com], [pageroab.zendesk.com]
• Energy VAT Reductions (2022–2023): To address rising energy costs, Spain temporarily lowered VAT on household electricity and gas. In 2022–2023, electricity was cut from 21% to 5%. As of 1 January 2024, electricity reverted to 10% (still below the standard rate) and natural gas and firewood were also at 5% through 2023, rising back to 10% by early 2024. These temporary cuts were part of broader anti-inflation measures. [marosavat.com]
• Cultural and other changes: Over the past decade, Spain reduced VAT from 21% to 10% on live cultural events (2018) and veterinary services (2019). Menstrual products and non-medical contraceptives were reduced from 10% to 4% effective 2023. No changes to the standard 21% rate are currently planned, and Spain generally uses EU’s flexibilities (like new zero rates) sparingly. Any future rate changes (e.g., pursuant to EU VAT Directive amendments) will be announced by the government and typically take effect at the start of a calendar year.

4. VAT Number Format

• Spanish Companies (CIF format): A 9-character NIF with a leading letter (denoting legal form or entity type), 7 digits, and a final check character (which can be a letter or number). For example, a Spanish public limited company (Sociedad Anónima) might have NIF “A12345678”, where “A” indicates a Sociedad Anónima, followed by six digits and a final check digit. A limited liability company (Sociedad Limitada) often starts with “B”, while other letters (C, D, F, G, etc.) denote partnerships, cooperatives, associations, etc.. The check character at the end is typically a letter for individuals and some entities, or a number for others, calculated from the preceding digits. On invoices, the “ES” country prefix is added for cross-border EU transactions (e.g., ESB12345678). [fonoa.com], [fonoa.com]
• Individuals: Spanish citizens use their DNI (Documento Nacional de Identidad) number plus a letter as their NIF. This consists of 8 digits and a letter (e.g., 12345678Z). Foreign individuals in Spain receive an Número de Identidad de Extranjero (NIE), which has an initial letter (X, Y, or Z), 7 digits, and a final letter (e.g., X1234567L). [fonoa.com]
• Foreign companies (non-residents): If a foreign business registers for Spanish VAT, it will receive a NIF that typically begins with “N” or “W” (indicating a non-resident entity) followed by 7 digits and a letter. The letter “N” NIF is often used for foreign companies without a permanent establishment in Spain, whereas “W” may denote a Spanish branch (permanent establishment) of a foreign entity. These codes help identify the nature of the entity. [fonoa.com]

5. Registration Requirements

• Spanish-established businesses: must register for IVA before commencing taxable activities in Spain (no minimum turnover threshold). However, small businesses with turnover ≤ €2 million may choose to use special regimes (e.g. the simplified “modules” regime or cash accounting regime, see Sections 15.6 and 19) which ease compliance but still involve VAT registration. There is no blanket turnover exemption from needing an IVA number, apart from the special case of the small entrepreneur exemption (businesses under €threshold that opt not to charge or deduct VAT under the simplified REgimen de Equivalencia, see Section 25). [fonoa.com]
• Non-resident businesses (no establishment in Spain): No threshold applies – a foreign business must register for Spanish VAT as soon as it engages in taxable activities in Spain. In practice, if a foreign company sells goods or services “in Spain” (per VAT place-of-supply rules), it needs a Spanish VAT number before making the supply. For example, if a German company holds stock in Spain and sells goods locally to Spanish customers, it must register (if the Spanish customer is a private person or a business that wouldn’t self-account). However, Spain has implemented a broad domestic reverse-charge for non-established suppliers: Under Article 84 of the VAT Law, if a non-established supplier sells goods or services to a VAT-registered business in Spain, VAT is accounted by the customer under the reverse charge (this covers most B2B scenarios). In such cases, the foreign supplier may avoid registration in Spain as its Spanish buyer will handle the VAT. This applies regardless of whether the foreign firm is already VAT-registered in Spain; the key criterion is lack of establishment in Spain. Important: If a foreign company’s only Spanish transactions are B2B sales subject to this reverse-charge rule, it does not need to register for Spanish VAT. But if it also makes B2C sales or other taxed supplies, registration is required. Additionally, non-EU companies cannot use the reverse-charge for sales to Spanish businesses – they are generally required to register and charge Spanish VAT unless a specific reverse-charge rule covers their transaction. [Spain | PDF], [Spain | PDF] [2026 01 10 Belgium | Word], [2026 01 10 Belgium | Word]
• Distance sales to Spain (E-commerce): Prior to July 2021, Spain had a domestic distance sales threshold of €35,000 for sales from other EU countries. Since the EU e-commerce VAT reforms of 2021, however, the threshold is now €10,000 EU-wide. Above €10,000 in EU-wide B2C sales of goods or TBE services, a supplier must charge VAT in the customer’s member state – meaning a foreign seller must either register in Spain or use the EU One-Stop Shop (OSS) to report the Spanish VAT due. If the €10,000 threshold is not exceeded, an EU seller can opt to keep taxing those sales at home. Non-EU sellers sending low-value goods (≤ €150) to Spanish consumers can similarly avoid Spanish registration by using the Import One-Stop Shop (IOSS) for all EU distance sales. (See Section 18 for more on distance selling and OSS/IOSS). [fonoa.com], [fonoa.com]

• Union OSS (for intra-EU B2C supplies): Spanish businesses making cross-border B2C sales of goods or services (e.g. ecommerce sales to consumers in other EU countries, or digital services to EU consumers) above the €10,000 threshold can opt to use the OSS in Spain to report all foreign VAT due, rather than registering in multiple countries. Similarly, businesses in other EU countries making B2C distance sales to Spain can report Spanish VAT via OSS in their home country, avoiding a Spanish registration. [2026 01 10 Belgium | Word]
• Non-Union OSS: Non-EU companies selling digital services to consumers in Spain can use the Non-Union OSS (registering in an EU country of choice) to pay Spanish VAT; this avoids a direct Spanish registration for digital B2C services (see Section 17). [fonoa.com]
• Import OSS (IOSS): Non-EU sellers shipping low-value goods (≤ €150) to Spanish customers can use the IOSS to charge Spanish VAT at the point of sale and remit it via a single EU registration, simplifying import processes (shipments under IOSS are import VAT-exempt upon entry into Spain). If IOSS is not used, the seller might have to register in Spain or the buyer may have to pay import VAT on delivery. Spain does not impose additional duties for goods under €150 beyond the VAT.

6. VAT Grouping Rules

• Eligibility: VAT grouping is available to corporate entities with establishments in Spain that are closely bound by financial, economic, and organizational links, as per EU Directive Article 11. Generally, this means a parent company and its subsidiaries (common ownership >50%, often interpreted as >50% voting or capital share, but Spanish law historically used accounting concepts of control). Only entities established in Spanish VAT territory (including Spanish branches of foreign companies) can join a Spanish VAT group. Entities performing only exempt activities (e.g. pure holding companies or those with only exempt financial activities) typically cannot join, as they are not “taxable persons” or their inclusion could distort the group’s deduction rights. [2026 01 10 Belgium | Word]
• Formation: Groups must apply to the tax authorities (filing a form 039 election) naming a representative entity (usually the parent or a nominated group company). All group members retain their individual NIFs and continue to issue their own invoices with their own VAT numbers. The group itself is also assigned a group identification (often the representative’s NIF with a suffix). The tax authority must approve the grouping. Once in a group, members generally must stay in it for a minimum period (e.g. the calendar year). [vatcalc.com]
• Operation – “Financial” VAT Group: Spain’s grouping does not eliminate VAT on intra-group transactions (unlike in some countries). Each member continues to account for VAT on its sales to other group members and third parties as usual. However, for monthly/quarterly VAT filings, the group has the option to submit a single consolidated VAT payment (or refund claim) via the representative member that nets the overall group’s output and input VAT positions. In practice, each entity prepares its own VAT return, but the representative entity files a collective payment form that sums the net positions of all members. This provides a cash-flow benefit by offsetting one member’s excess credits against another’s liabilities within the same period. All members of the group are jointly and severally liable for the group’s VAT debts, and the representative is responsible for ensuring compliance (filings, payments). [vatcalc.com] [2026 01 10 Belgium | Word]
• New “Advanced” Group Regime (2025): Effective 1 January 2025, Spain modified its VAT group system (often referred to as “Advanced REGE”). The core change is administrative: groups must now report their membership and any changes annually (via form 039), and large group members (turnover > €6 million) must use the SII e-ledger system (see Section 23.4) from 2025. Despite these changes, Spain still does not treat the group as a single taxable person for all purposes – intra-group supplies remain subject to VAT (meaning no automatic disregarding of intercompany invoices). The focus is on easing payment and refund consolidation. This partial grouping approach distinguishes Spain’s system from full VAT unity as practiced in countries like the Netherlands or Germany. [vatcalc.com]

7. VAT Recovery for Foreign Businesses

• EU Businesses (8th Directive VAT Refunds): An EU-established company that is not registered in Spain but incurs Spanish VAT (e.g. on travel, conferences, or local purchases with Spanish VAT) can reclaim that VAT via an electronic refund claim in its home country under the EU 8th Directive refund system. The company files a claim through its own tax authority’s online portal (by 30 September of the following year), which is then forwarded to Spain. Key conditions and features: [2026 01 10 Belgium | Word], [2026 01 10 Belgium | Word]
  • The claimant must not have had a place of business or VAT registration in Spain during the refund period.
  • Minimum claim amounts: €400 for quarterly claims (if the period is less than a year) or €50 for a full-year claim. (These follow the EU standard minimums.) [2026 01 10 Belgium | Word]
  • Invoice requirements: Generally, invoices ≥ €1,000 (or ≥ €250 for fuel) must be submitted with the claim (scanned copies). Smaller invoices need not be attached but must be listed. [2026 01 10 Belgium | Word]
  • Refund process & timing: The Spanish Tax Agency (specifically, the central Office for Non-Resident Refunds in Madrid) processes the claim. The decision is typically made within 4 to 8 months. Approved refunds are paid to the bank account indicated by the claimant (no Spanish bank account required). If additional information is needed or the claim is rejected (in whole or part), the Spanish authorities will communicate via the portal. Interest is paid on late refunds (if Spain fails to decide within the directive’s timeline). [2026 01 10 Belgium | Word]
• Non-EU Businesses (13th Directive VAT Refunds): A company based outside the EU, with no VAT registration or establishment in Spain, can also apply for a VAT refund on expenses incurred in Spain under the 13th Directive (direct paper application to Spanish authorities). However, Spain operates a strict reciprocity requirement: refunds to non-EU businesses are only granted if the applicant’s home country offers comparable VAT refunds to Spanish businesses. As of 2025, Spain recognizes reciprocity with a limited number of countries (currently Norway, Canada, Japan, Switzerland, Israel, and Monaco are recognized – notably, no reciprocity with the USA or many other nations, so businesses from those countries cannot claim Spanish VAT refunds). Key elements of the 13th Directive process for Spain: [2026 01 10 Belgium | Word] [taxation-c….europa.eu]
  • Application deadline: 30 June of the year following the year of the VAT (e.g. by 30 June 2026 for invoices from 2025). [taxation-c….europa.eu]
  • Submission method: Claims are made by sending Form 360/361 (and supporting documents) directly to the Spanish Tax Agency in Madrid. The claim form and supporting documents must be submitted in Spanish. A “Certificate of Taxable Status” from the home country (proving the business is registered for a sales tax/GST/VAT) is required for each claim. Original invoices aren’t automatically required with the claim, but must be presented on request. [taxation-c….europa.eu]
  • Fiscal representative: Spain requires a resident tax representative for non-EU claimants (except those in a few locations like Canary Islands, Ceuta, Melilla). The representative, who must be established in Spain, is jointly liable for any undue refunds. A notarized power of attorney (“apoderamiento”) or similar is needed to appoint the rep. In practice, many firms hire Spanish tax agents or consultants to handle 13th Directive claims. [taxation-c….europa.eu] [taxation-c….europa.eu], [taxation-c….europa.eu]
  • Reciprocity & rejections: If a country is not on Spain’s reciprocity list, claims from its businesses are denied by the Spanish authorities. Even for recognized countries, Spanish law requires a formal reciprocal agreement; Spanish authorities have been known to reject claims if a formal reciprocity resolution isn’t in place. Non-EU companies should verify eligibility before incurring significant Spanish VAT. [vatupdate.com]
  • Minimum claim & timeframe: The minimum claim amounts are €200 for quarterly applications or €25 for annual applications (similar to 8th Directive rules). Spain’s tax office typically processes 13th Directive claims within 6-8 months. If a refund is approved, it is paid to the claimant’s bank (often the fiscal rep’s account). If the claim is incomplete or denied, the tax office will notify the representative. [taxation-c….europa.eu]

8. Fiscal Representative Requirements

• EU-established businesses: No fiscal representative is required for companies from other EU Member States registering in Spain. EU businesses may register directly (the EU principle of mutual assistance in tax collection allows Spain to trust other EU traders to fulfill obligations). [taxation-c….europa.eu]
• Non-EU businesses: If a company with no EU establishment is obliged to register for Spanish VAT, a fiscal representative in Spain is generally required. The representative must be a person or firm domiciled in Spain (often a tax consultant or a Spanish subsidiary of the company). They must have a power of attorney from the foreign business and are jointly and severally liable for the VAT obligations. In practice, the rep often handles the VAT filings and communications with the tax authority as well. [taxation-c….europa.eu]
  • Exceptions: If Spain has a mutual assistance agreement with a non-EU country, it may waive the fiscal rep requirement for companies from that country. As of 2026, Spain has waived the fiscal rep requirement for certain countries like Norway and the UK (post-Brexit) due to specific agreements. Businesses from these jurisdictions can register for Spanish VAT directly without appointing a rep (though they may still opt for a local agent for convenience). The list of exempted countries is subject to change based on international agreements. Most other non-EU businesses (e.g. from the USA, China, etc.) must appoint a representative to register. [2026 01 10 Belgium | Word]
• Guarantee Requirement: When a fiscal rep is required, Spanish authorities typically demand a bank guarantee or security deposit to cover potential VAT debts. Historically, this guarantee was approx. €7,500 minimum (or 2% of annual VAT turnover), capped at €1,000,000. Since reforms in 2021, if the guarantee is provided, the rep’s personal liability is limited to that amount. This measure was meant to encourage firms to offer representation services by capping their risk. [2026 01 10 Belgium | Word]

9. Currency and Foreign Exchange (FX) Rules

• Invoicing currency: Invoices in Spain may be issued in any currency, but the VAT amount must be converted to euros on the invoice (or an equivalent in euros provided). This ensures that the tax due is clearly stated in EUR. It’s common to list the net, VAT, and gross in the foreign currency and then show the VAT amount in euros alongside. [2026 01 10 Belgium | Word]
• Conversion rates: For VAT accounting, businesses should use official exchange rates (typically published by the European Central Bank (ECB) or the Bank of Spain) to convert foreign currency amounts to EUR. Spain does not mandate a specific source (ECB daily rate is commonly used) – the requirement is that the rate be official and applied consistently. The conversion should generally be made using the rate applicable on the tax point date (the date of supply or invoice date), unless the law permits an alternative (some businesses use end-of-period rates for convenience, but these must align closely with official rates). [2026 01 10 Belgium | Word] [2026 01 10 Belgium | Word], [2026 01 10 Belgium | Word]
• VAT Returns: When preparing VAT returns, any sales or purchase values in foreign currencies must be converted into EUR. Records should be kept of the exchange rate used in case of audit (e.g., printouts of the ECB rate on the relevant date). [2026 01 10 Belgium | Word]
• Adjustments: If a VAT amount has been converted on an invoice, the same rate should be used to claim input VAT or declare output VAT to avoid discrepancies. If a credit note is later issued in a foreign currency, the conversion for adjustment should follow equivalent principles.
• Dual display: While not mandatory, many businesses choose to show amounts in both the foreign currency and EUR on invoices for clarity. The key is that the VAT payable is always clear in euros for compliance purposes. [2026 01 10 Belgium | Word]

10. VAT Law and Legal Framework

• Primary Law: Law 37/1992 (Ley del IVA) – the main VAT Act, which defines the scope of tax, chargeable event, place of supply, rates, exemptions, obligations, etc., largely mirroring the structure of the EU VAT Directive. It has been amended periodically to incorporate EU VAT Directive changes (most recently for the 2020 “Quick Fixes” and 2021 e-commerce VAT package, and the 2025 VAT in the Digital Age (ViDA) reforms). [EU VAT Cha…Electronic | Word]
• Secondary Legislation: Royal Decree 1624/1992 (Reglamento del IVA) – containing more detailed implementation rules on invoicing, bookkeeping, reporting, etc. Additional Royal Decrees and Orders update specific aspects (e.g. invoicing rules were updated by RD 1619/2012, which implemented the EU Invoicing Directive). Periodically, the government issues Decretos-ley (urgent decrees) that adjust VAT rates or introduce temporary measures (like the recent food and energy VAT cuts via RDL 20/2022). [sovos.com], [sovos.com]
• Tax Agency Guidance: The AEAT issues binding rulings (consultas vinculantes) and publishes a comprehensive annual VAT Instruction (Información o Manual del IVA) that explains current policy. While not law, these are important for interpreting VAT issues in practice. Spanish courts (and ultimately the Court of Justice of the EU) provide case law guiding how the VAT law is applied.
• EU Law Supremacy: As in all EU states, the EU VAT Directive (Council Directive 2006/112/EC and subsequent amendments) underpins Spanish VAT law. In case of conflict, EU law prevails. Spain also adheres to EU Regulations (directly applicable) on VAT administrative cooperation and implementing rules. For example, Council Implementing Regulation 282/2011 provides detail on how to interpret VAT rules across the EU, which Spanish authorities follow.
• Notable Features: Spain’s VAT law includes various special regimes permitted by the EU Directive: e.g., simplified scheme (for small businesses), agricultural flat-rate scheme, investment gold exemption, travel agencies margin scheme (REAV), second-hand goods margin scheme, etc. It also allows options like “option to tax” certain exempt transactions (for example, leasing of commercial real estate can be taxed if both landlord and tenant opt, allowing input recovery). Additionally, Spain has made use of “use and enjoyment” provisions (Article 59a of the Directive) for certain services – notably expanding the taxation of B2C services to non-EU customers if used in Spain as of 2023 (see Section 15.9). [marosavat.com], [marosavat.com]

11. Tax Authorities

• Organization: The AEAT operates through both central and regional offices. VAT registrations and filings are generally handled by the tax office corresponding to the taxpayer’s tax address in Spain (or by the Large Taxpayers Central Office for very large companies). Non-resident VAT payers without a permanent establishment are usually managed by the National Office for International Taxation (ONFI) or equivalent central office in Madrid that specializes in non-resident matters. [taxation-c….europa.eu]
• Services & Communication: The Tax Agency provides extensive online services. Spanish VAT returns (Form 303) and other statements (349, 390, Intrastat, etc.) are filed electronically, typically via the AEAT’s website using a digital certificate. The agency offers a virtual assistance tool for VAT questions and pre-filing (see Pre303 in Section 22.4). Official correspondence is often in Spanish, and taxpayers or their representatives will usually communicate via the Tax Agency’s online portal or secure email. For foreign companies, communication in English is limited; having a Spanish-speaking representative is beneficial.
• Audits and Enforcement: The AEAT monitors compliance through desk reviews and audits. They cross-check data from different filings (e.g., comparing a company’s VAT returns with its clients’ purchase ledgers, or reconciling intra-EU sales declared by one party with acquisitions by the counterparty via the VIES system or annual listings). Spain has robust anti-fraud programs; for instance, it participates in Eurofisc (EU’s VAT fraud information exchange) and has implemented domestic anti-fraud measures (see Section 20 for certified software requirements). Audit statute of limitations is typically 4 years from the filing deadline (the tax authority generally cannot assess VAT after four years from the return’s due date), extended to 5 years in cases of refund requests (taxpayers have up to 4 years to claim a refund and the administration has an additional year to review, see Section 21). In cases of suspected fraud or certain crimes, the period may be longer.
• Appeals: Taxpayers may challenge VAT assessments or penalties through an administrative appeal (reclamación económico-administrativa) to the regional or central Economic-Administrative Tribunal, and subsequently through the court system (Contentious-Administrative courts). During disputes, contested amounts may need to be paid or guaranteed, though refunds are granted with interest if the taxpayer prevails.
• Cooperation: Spain’s tax authority cooperates with other EU tax administrations under EU regulations for VAT information sharing and collection assistance. This means assessments and collection can extend across borders within the EU for delinquent VAT.

12. Scope of VAT

• The supply of goods made in Spanish VAT territory by a taxable person in the course of business. This includes transfers of tangible property, sales of electricity/gas, etc., where Spain is the place of supply. (Determining if a sale is “made in Spain” depends on place-of-supply rules – see below.)
• The supply of services made in Spanish VAT territory by a taxable person in the course of business. This encompasses virtually all economic activities that are not supplies of goods, from consulting services to construction work to leasing. Again, place-of-supply rules decide if a service is considered “in Spain.”
• Intra-Community acquisitions of goods in Spain. When a VAT-registered business in Spain acquires goods from another EU member state, it must account for Spanish VAT on those goods (often via the reverse charge on its VAT return). Certain acquisitions by organizations or exempt businesses above a threshold (~€10,000/year) also fall in this category. [2026 01 10 Belgium | Word], [2026 01 10 Belgium | Word]
• Imports of goods into mainland Spain/Balearics from outside the EU. Such imports are subject to Spanish import VAT (and any customs duties) at the point of importation (customs release). Import VAT is usually paid to Spanish Customs (often via the import declaration), though Spain now allows import VAT deferral (see Section 15.6). [2026 01 10 Belgium | Word], [2026 01 10 Belgium | Word]

• Goods: If goods are located in Spain at the time of sale and sold domestically, VAT applies. If goods are shipped from Spain to outside Spain:
  • To another EU country (B2B): it can be a zero-rated intra-Community supply (if buyer is VAT-registered in another member state); if to an EU consumer and the seller crosses the OSS threshold, Spanish VAT must be charged via OSS (since July 2021, see Section 18). [fonoa.com]
  • To a destination outside the EU: it’s an export, zero-rated (0% VAT). [fonoa.com]
  • Goods arriving in Spain from outside: imports, subject to import VAT at customs (except special reliefs).
• Services: Spain follows main EU rules:
  • B2B services: taxed where the customer is established (general rule). Thus a Spanish business purchasing services from a non-EU provider must self-assess Spanish VAT under the reverse charge (and can usually deduct it simultaneously). Conversely, a Spanish business providing services to a business customer abroad typically does not charge Spanish VAT (the service is outside scope, falling under the customer’s country’s VAT). [2026 01 10 Belgium | Word], [2026 01 10 Belgium | Word]
  • B2C services: taxed where the supplier is established (general rule) – so a Spanish company serving EU consumers normally charges Spanish VAT. Exceptions apply for certain services like those related to immovable property (taxed where the property is), passenger transport (where distance traveled), restaurant and catering services (where performed), short-term hiring of transport (where vehicle is used), and electronic/telecom/broadcast services (taxed where the consumer is, via OSS for non-established suppliers – see Section 17) in line with EU rules.
  • Use-and-Enjoyment (Overrides): Spain makes use of optional “use & enjoyment” rules in specific cases (Article 70.2 of the VAT Law). Notably, since 1 January 2023, Spain extended VAT to certain B2C services provided by non-EU suppliers to non-business customers in Spain if the services are effectively used in Spain. For example, consulting or legal advice provided by a U.S. company to a Spanish individual was previously outside the scope of Spanish VAT (supplier outside EU, B2C general rule = place of supply outside EU). Under the new rule, if the service is used in Spain, the non-EU supplier is deemed to have a Spanish place of supply and should charge Spanish VAT. This is relatively unusual (most EU countries do not apply use-and-enjoyment to B2C services). Additionally, Spain uses use & enjoyment to tax certain B2B services (e.g., hiring of means of transport, or services connected to immovable property) that would otherwise be outside the EU, and to not tax certain services that would otherwise be Spanish-taxed but are used outside the EU (the latter is rarely applied). Businesses should be aware of these rules, as they might trigger a need for a foreign company to register in Spain or forgo VAT on specific services. [marosavat.com], [marosavat.com]

• A Barcelona business sells laptops to a customer in Madrid – 21% IVA is charged (domestic supply).
• A Madrid company sells a machine to a business in France: the sale is zero-rated (0% IVA) as an intra-Community supply, with the French buyer accounting for VAT in France. [fonoa.com]
• A Spanish architect designs a building in Spain for a German business – Spanish VAT applies (exception to B2B general rule: service related to Spanish real estate is taxed in Spain).
• A German consultant provides advice to a Spanish company – place of supply is Spain under B2B rules, so the Spanish client must apply reverse-charge IVA (no Spanish registration for the German firm). [Spain | PDF], [Spain | PDF]
• A U.S. software company sells downloadable software to Spanish consumers (B2C e-service) – place of supply is Spain (consumer’s location), so 21% IVA is due. The U.S. company can use the Non-Union OSS to remit Spanish VAT (Section 17).
• A UK firm gives an online training (digital service) to a Spanish private individual – Spanish IVA applies via OSS. If the UK firm instead only provided live in-person training in Spain, that would be a B2C service carried out in Spain, also subject to IVA at 21%.
• A non-taxable Spanish entity (not VAT-registered) purchases €15,000 of goods from Italy in a year – once it exceeds the €10,000 intra-Community acquisition threshold, it must either register for IVA or have the seller charge Spanish VAT via the OSS going forward.
• A Canadian company without Spanish presence sells consulting services to a Spanish consumer who uses them in Spain – under Spain’s use-and-enjoyment rule (post-2023), the service is deemed supplied in Spain, and the Canadian company may need to register and charge Spanish VAT (or route the sale via an intermediary).

13. Time of Supply (Tax Point) Rules

• Special case – Long-term construction/installation: If a supply of goods involves installation or assembly in Spain and spans a period of time, the tax point occurs when the customer accepts the work or when it’s completed. Interim payments would trigger proportional tax points. If the project lasts over a year without intermediate invoices, a yearly tax point also applies (per the continuous supply rule).

14. VAT Invoicing Requirements

• Invoice number and series: A sequential number (unique and sequential per series). You may maintain separate series (identified code) for different departments or types of invoices. The numbering must be correlative (no gaps). [fonoa.com]
• Issue date of the invoice. [fonoa.com]
• Supplier’s name, address, and VAT number (NIF). [fonoa.com]
• Customer’s name, address, and VAT number (for B2B supplies, and B2C when the customer is a business or when the invoice exceeds €100). Retail invoices under €400 and certain B2C sales can use simplified invoices (see 14.4) which may not list the customer’s details. [fonoa.com]
• Description of goods/services supplied and quantity.
• Date of supply of the goods/services if different from invoice date (e.g. if invoicing occurs later). [fonoa.com]
• Taxable amount per rate (net value) – typically itemized by VAT rate/category.
• VAT rate(s) applied and the corresponding VAT amount for each rate (and the total VAT amount). [fonoa.com]
• Total gross amount payable (including VAT).
• If applicable, mention of any VAT exemptions or reverse charge. For example, an invoice for an intra-EU supply should state “Exempt intra-Community supply – Art. 25, Ley IVA” or similar, and include the buyer’s EU VAT ID. A reverse-charged supply should indicate “IVA – inversión del sujeto pasivo, Art. 84 Uno 2º Ley IVA.”
• Other specifics: If a special scheme applies, it should be noted (e.g., “Régimen de recargo de equivalencia” for retailers under the surcharge regime, or “Régimen especial de las agencias de viajes” for travel agents).

• As of 2023, Spain passed Law 18/2022 “Crea y Crece”, which will mandate B2B e-invoicing in a phased manner after implementing regulations are issued. Planned timeline (as of 2025) was: large companies (annual turnover ≥ €8 million) to implement e-invoicing within 1 year of the regulations, and all other businesses 2 years after. This law aims to require all businesses established in Spain to use electronic invoices for business transactions, with real-time transmission of data to authorities (“clearance”-style reporting, called “Verifactu”). However, full implementation has been delayed; as of January 2026, the government has postponed the Verifactu e-invoicing mandate to 2027 to allow more time for adaptation. Companies should prepare for this upcoming shift to mandatory e-invoicing and consider upgrading their invoicing systems accordingly. [sede.agenc…ria.gob.es], [sede.agenc…ria.gob.es]
• Digital signatures on e-invoices are not strictly mandatory under current law if other integrity measures are in place, but in practice many Spanish companies use electronic signatures or EDI with mutually agreed security measures to comply with authenticity requirements. It is expected that the new mandate will define technical standards for e-invoices but likely leveraging existing formats (like Facturae XML with electronic signature).
• Storage: Electronic invoices must be stored in a format guaranteeing readability and access by the tax authorities for the retention period (see 14.6). If using an overseas storage server, it should be communicated to the tax authority.

15. Compliance and Deductions

• Exempt activities: If a business makes exempt supplies without right to deduct (see Section 3.3), the VAT on costs related to those supplies is not recoverable. For example, banks and insurers (largely making exempt financial services) generally cannot reclaim VAT on their inputs proportional to those activities. If a business has mixed activities (taxable and exempt), it must apply a pro-rata (prorrata) calculation to determine the percentage of input VAT recoverable (often based on turnover ratio of taxable to total activities). This annual pro-rata percentage is provisionally applied each period and adjusted at year-end.
• Non-deductible expenses: Certain items are explicitly blocked from deduction even for fully taxable businesses. Key examples: business entertainment expenses (client meals, gifts, hospitality) – input VAT on these is not deductible; passenger cars and related expenses (fuel, repairs) – generally 50% of the VAT on passenger vehicles is non-deductible unless the car is 100% business-use (there are presumptions in law, often a 50% block); accommodation, travel, restaurant expenses incurred for business (e.g. employee business travel) often have their VAT blocked unless for specific taxable purposes (many companies do not reclaim employee travel VAT because of strict rules). [2026 01 10 Belgium | Word]
• Imports and customs VAT: Import VAT is deductible on the same return where it is accounted (especially if using the deferred payment scheme, see 15.6). If import VAT was paid to Customs in cash, it can be deducted on the next return with proof of payment.
• Timing of deduction: Input VAT generally must be claimed on the VAT return corresponding to when the tax point occurred (e.g., when the supplier’s invoice was issued). If a business misses claiming some input VAT, it can still claim it on a later return within the 4-year statute of limitations.

• Cross-border (Article 44 services & imports): In line with EU rules, B2B services from non-resident suppliers are reverse-charged to the Spanish business customer (no Spanish VAT is charged by the supplier; the customer accounts for output and input VAT simultaneously). Likewise, intra-EU acquisitions of goods are taxed via reverse charge (the Spanish buyer declares acquisition VAT and, if entitled, deducts it in the same return). Imports of goods are not handled via reverse charge except when using the import deferment scheme (15.6). [2026 01 10 Belgium | Word]
• Domestic Reverse Charge: Spain has a notably wide domestic reverse-charge mechanism under Article 84 of its VAT law, in line with EU options. If a supplier is not established in Spain but makes a taxable supply to a Spanish VAT-registered customer, the VAT is shifted to the customer (the foreign supplier doesn’t charge Spanish VAT). This applies irrespective of the foreign supplier’s VAT registration status in Spain. Additionally, Spain applies domestic reverse charge to specific high-fraud risk sectors: e.g. supplies of real estate by a business, certain construction services (where the customer is a contractor who will build and sell a property), sales of waste and scrap, supplies of unrefined gold, certain emission allowances, etc., are subject to reverse charge by law. In such cases, the Spanish purchaser (if a business) is required to self-assess the VAT. [Spain | PDF], [Spain | PDF] [Spain | PDF]
• Cross-border chain transactions: For triangular trade (involving three parties in different EU countries), Spain applies the EU simplification where a middleman (Spanish trader) does not register in the destination country if conditions are met (the Spanish trader would zero-rate its sale and the final customer does acquisition tax).

• The invoice must remain unpaid at least 6 months after the due date (for small businesses under €6M turnover, this period is 6 months; larger businesses must usually wait 1 year). In cases of creditor bankruptcy, the period might be shorter. [Issue 529…an 26 2026 | Word], [Issue 529…an 26 2026 | Word]
• The supplier must have attempted to collect the debt (e.g., formal demand or legal action) and, for larger debts (>€300), pursued legal recovery or notarial reclamation.
• The customer must be a business or professional. (No bad debt relief is allowed for unpaid debts from final consumers or related parties.)
• A corrective invoice must be issued to the debtor, and a claim filed with the tax authorities (Form 952) within 3 months after the end of the 6-month/1-year period. The adjustment is then reflected on the VAT return (output VAT is reduced). The customer (if VAT-registered and had deducted the VAT) must adjust its input VAT accordingly.
• If the customer eventually pays after relief was claimed, the supplier must re-charge the VAT.

• This scheme is optional and mainly available to businesses filing monthly VAT returns (which generally means being in the monthly refund regime – REDEME, or being a large business). As of 2023, all importers on monthly filing can opt in.
• If using the scheme, the import VAT that would normally be paid to Customs is merely calculated on the customs declaration but not paid; instead, the amount is reported as output VAT and as input VAT on the next Form 303. The two offset, meaning no cash outlay (assuming full deduction allowed).
• The company must tick the option for deferred import VAT accounting on its tax registration (Form 036) or via a modification. Once in the system, all import VAT in subsequent years is deferred to the return.
• This provides a cash-flow advantage, especially for goods imported in large value. If not using the scheme, import VAT is paid to Customs upon importation and later recovered on the VAT return (which could mean a gap of weeks or months).

• Services to non-EU customers (B2C) in specific sectors, such as consulting, legal, accounting, financial, and advertising services: If provided to a non-EU customer but used in Spain, Spain asserts taxing rights (since 2023). This is intended to prevent Spanish VAT leakage when Spanish consumption is involved. [marosavat.com], [marosavat.com]
• Hiring of movable tangible property (e.g., hiring of equipment) to EU-based customers (B2B) is normally taxed where the customer is (Spain, via reverse charge, if the customer is in Spain). However, if such equipment is used exclusively outside the EU, Spain may consider the service as outside scope (not commonly applied).
• Long-term hiring of means of transport: If a Spanish resident without a VAT ID (B2C) hires a means of transport (like a car) from a lessor outside the EU, and effectively uses it in Spain, Spanish VAT can be applied via use-and-enjoyment override.
• Telecommunications, broadcasting, and electronic services (B2B): Spain uses use-and-enjoyment rules to ensure that if such services are effectively used in Spain by a business, they are taxed in Spain, and if used outside the EU, they can be treated as outside scope. However, for B2C digital services, EU law does not allow use-and-enjoyment to override the consumer location rule (to maintain consistency across the EU).

• For movable capital assets (equipment, machinery, etc.), the adjustment period is 5 years (the year of acquisition plus four subsequent calendar years).
• For immovable property (real estate), the adjustment period is 10 years (year of acquisition plus nine more years).

16. VAT Recovery for Non-Residents

• Reciprocity is required (Section 7). Spain’s list of reciprocal countries is limited. If your country isn’t on the list (e.g., US, Australia, etc.), Spanish law does not allow a refund. [taxation-c….europa.eu]
• Fiscal rep: As stated earlier, a tax representative in Spain is mandatory for these claims, adding cost and complexity. [taxation-c….europa.eu]
• Minimum amounts: €200 for quarterly, €25 for annual claims. [taxation-c….europa.eu]
• Timeline: The tax agency should respond within 6 months of receiving a complete claim. If no response, it’s effectively a deemed rejection (though in theory interest is due on late approvals). [taxation-c….europa.eu]

17. VAT on Digital Services

• B2C Digital Services (Telecom, Broadcasting & Electronic Services): Since 1 January 2015, if a business (EU or non-EU) supplies digital services – e.g., downloads of software, streaming media, e-books, telecom services, etc. – to a non-business customer in Spain, those services are taxable in Spain at the Spanish VAT rate (generally 21%). The supplier has two main options to comply: [fonoa.com], [fonoa.com]
  1. Register for VAT in Spain and charge 21% IVA on such supplies, filing periodic Spanish VAT returns; or
  2. Use the One-Stop Shop (OSS) digital services regime. Prior to 2021, this was the Mini One-Stop Shop (MOSS), which allowed non-established suppliers to declare Spanish VAT through a single EU portal. Now MOSS has been integrated into the OSS system. A non-EU company can register under the Non-Union OSS (in any one EU state) and use it to report Spanish VAT (and all EU countries’ VAT) on digital services to consumers. EU-based companies use the Union OSS (usually in their home country) for their B2C digital services across the EU. Using OSS means the supplier does not need a separate Spanish VAT registration. [fonoa.com]
  The VAT rate for most electronic services is the standard 21%. The €10,000 threshold (combined for EU-wide B2C digital sales and distance goods sales) applies to EU-based suppliers – below that, they may opt to just charge their home country VAT (but many still choose OSS for simplicity). Non-EU suppliers have no threshold – a single euro of Spanish B2C digital service means Spanish VAT is due (via OSS or Spanish registration). Examples of electronic services include supply of software and updates, streaming or download of music, films, e-books, online gaming, e-learning courses, SaaS offerings, etc.. [fonoa.com]
• B2B Digital Services: For digital services supplied business-to-business, the general B2B rule applies – tax is due where the customer is established. A non-Spanish provider supplying a Spanish business does not charge IVA; the Spanish business must self-account via reverse charge. A Spanish provider supplying an EU business does not charge Spanish VAT (the buyer will reverse charge in its state). However, in cases where the normal rules would place the service outside the EU, Spain might use use-and-enjoyment to tax the service if it’s used in Spain (e.g., certain cloud services provided by a non-EU company to a business in Spain might still be subject to reverse charge in Spain even if general rules say otherwise – though this is a complex area).

18. Distance Selling Rules

• Union OSS (EU sellers): Instead of registering in Spain, EU companies selling to Spanish consumers can report Spanish VAT through the quarterly Union OSS returns in their own country. Spanish VAT on those sales is then remitted by their tax authority to Spain. This covers intra-EU distance sales of goods and certain services. [2026 01 10 Belgium | Word]
• Non-Union OSS (Non-EU sellers of services): A non-EU company (with no EU establishment) selling e-services, telecom, or broadcasting to Spanish consumers can use the Non-Union OSS (an EU web portal) to declare Spanish VAT, avoiding a Spanish registration. [fonoa.com]
• Import OSS (IOSS): For goods imported into Spain and sold to consumers (B2C) with a consignment intrinsic value ≤ €150, sellers can use IOSS. If a non-EU seller or an EU seller dispatching from outside the EU registers for IOSS (and possibly appoints an EU intermediary if required), they collect Spanish VAT at sale and pre-declare it via IOSS, so that goods clear customs VAT-free in Spain. If IOSS is not used, low-value goods are subject to Spanish import VAT (often collected by the courier from the consumer). Spain does not have an independent domestic distance selling threshold; the EU rules apply uniformly. [fonoa.com]

19. Cash Accounting Scheme

• Eligibility: Businesses with a turnover in the previous year ≤ €2,000,000 can opt into RECC. Additionally, if a single customer accounts for over €100,000 of annual revenue, the business is excluded from this regime (this is to prevent large B2B sellers from using cash accounting to the detriment of large customers). The regime is mainly aimed at small and medium enterprises to alleviate cash flow pressures. [sede.agenc…ria.gob.es]
• Option Process: To use cash accounting, a business must elect the regime in advance, by ticking the option in their census form (036) before the start of the year (or upon registering a new business). Once opted in, the business must generally remain in the regime for at least 3 calendar years. Exiting the regime requires a formal renunciation (also via Form 036) and then a 3-year exclusion period if renounced. [sede.agenc…ria.gob.es]
• Operation: Under RECC, the tax point for sales is delayed until payment is received from the customer, but no later than December 31 of the year following the sale. If the customer hasn’t paid by that date, VAT becomes due in any case on that day (to prevent indefinite deferral). For purchases, the right to deduct arises upon payment to the supplier (again no later than Dec 31 of the year after the invoice). The taxpayer must keep detailed records of receipts and payments dates. [sede.agenc…ria.gob.es]
• Obligations: Invoices issued under the cash accounting regime must bear the mention “Régimen especial del criterio de caja”. The supplier must still issue invoices at the time of sale as usual, but indicates that VAT is not due until payment is received. Customers of RECC suppliers who are themselves VAT-registered (and not under RECC) face a complementary rule: such customers cannot deduct the input VAT until they pay the invoice (even though they may have an invoice in hand). This ensures symmetry (tax not credited until it’s paid to the government). Thus, being in RECC can disadvantage your B2B customers’ cash flow, and large companies often avoid dealing with suppliers under RECC for this reason. [sede.agenc…ria.gob.es]
• Scope: Some transactions are excluded from the cash regime regardless of eligibility – e.g., those under other special schemes (agriculture, flat-rate farmers, investment gold, VAT groups) can’t use RECC. Also, exports, intra-EU sales, imports, and reverse-charged transactions are unaffected by RECC (they are outside its scope). [sede.agenc…ria.gob.es]

20. VAT-Registered Cash Tills (Point-of-Sale Requirements)

• Anti-Tax Fraud Law (Law 11/2021): Spain’s Anti-Fraud Law introduced a requirement that as of 2024, invoicing and point-of-sale software used by businesses must be certified to ensure it cannot be used to manipulate sales data. Software must be “tamper-proof” and compliant once technical regulations are issued. Using uncertified software or software that allows data deletion can lead to penalties (up to €50,000 per software product) – however, detailed regulations (the “Verifactu” system) have been delayed until 2024/2025 for implementation. Businesses should monitor these requirements and ensure their POS systems meet the new standards when they come into force.
• TicketBAI (Regional Initiative): In certain regions (like the Basque Country and Navarre), local governments have introduced “TicketBAI,” a system that requires certified e-invoicing or cash register software for all B2C and B2B sales. Under TicketBAI, invoices/receipts are generated with a secure QR code and reported in real-time to the regional tax authorities. While this is not (yet) a national requirement, it is essentially a pilot of digital control measures. Nationally, no mandatory e-receipt system is in place for B2C as of 2026, but the planned Verifactu e-invoicing system (see 14.3) is expected to introduce real-time invoice reporting/clearance broadly (likely encompassing many B2B and possibly some B2C transactions). [sede.agenc…ria.gob.es], [sede.agenc…ria.gob.es]
• Conclusion: At present, Spanish law does not impose a single specific model of cash register or “fiscal till” nationwide, but the direction is toward stricter controls. Businesses should ensure their POS or invoicing systems produce compliant invoices (with all required details) and keep accurate digital records. Those in regions with TicketBAI must use certified software. Others should be prepared for future mandates and in the meantime ensure that sales suppression or dual accounting features are eliminated from their systems, as heavy fines apply under the 2021 Anti-Fraud law.

21. Statute of Limitations

• The 4-year period starts from the day after the deadline of the tax return or the day after the actual filing, whichever is later. For example, if a quarterly Q1 2022 VAT return was due by April 20, 2022 and filed on that date, the statute expires April 20, 2026. After that, the tax authorities cannot reopen that period (except in case of fraud or certain criminal/tax evasion cases, which pause or extend the limit).
• For refund claims (e.g., the annual VAT credit refund or 8th/13th Directive claims), Spanish law also sets a 4-year period to request a refund. If a taxpayer paid VAT that should have been exempt or zero-rated, they have a 4-year window to reclaim it. The Tax Agency also has an additional year to resolve refund requests in certain cases, effectively making the period for final resolution up to 5 years for some refund situations.
• If the Tax Agency issues an assessment or opens an audit before the expiration of the 4-year period, the clock may reset or extend (for example, a formal tax audit can suspend the countdown until the audit is closed).
• Spanish tax procedural law includes “interruption” rules: if a taxpayer files a corrective return or the authorities take certain actions, the limitation period can restart.

22. VAT Return Filing

VAT returns in Spain are filed on Form 303, the periodic self-assessment. There are also associated forms like 390 (annual summary) and 349 (EU sales list). Key aspects of the filing obligations:

• Monthly filing is required for businesses above a certain size and for those in specific regimes. Specifically, taxpayers who are in the monthly refund regime (REDEME) or classified as “large entrepreneurs” (annual turnover above €6,010,121) must file monthly. In addition, all VAT groups (Section 6) and those who opt to use the SII e-invoicing system (Section 23.4) are on monthly filing. [vatcalc.com], [sovos.com]
• Quarterly filing is the default for other businesses (turnover below €6 million, not in REDEME). These returns cover calendar quarters (Q1: Jan–Mar, Q2: Apr–Jun, etc.).

• Quarterly returns (standard schedule): Due by the 20th day of the month following the quarter’s end (April 20, July 20, October 20, and January 20 for Q4). However, the Q4 return (Oct–Dec) has an extended deadline to January 30 of the next year. For example, the Q4 2025 return is due by January 30, 2026. [fonoa.com]
• Monthly returns: Due by the 20th of the following month. For example, the July 2026 return is due August 20, 2026. [fonoa.com]

• Carry Forward Credit: The default is that the excess credit is carried forward to offset future VAT liabilities. This is automatic; the credit appears in the next period’s Form 303.
• Refund Claims: At certain points, taxpayers can opt to request a cash refund of accumulated credits. Notably, taxpayers in the REDEME monthly refund scheme can request a refund every month. Other taxpayers may request a refund at the end of the year (on the last return of the year, typically Q4) or when deregistering. The annual refund is requested via the annual summary (Form 390) or final quarterly return. The tax authorities will generally pay out approved refunds within 30 days if the taxpayer is in REDEME, or within 6 months for annual refund requests (if delayed beyond 6 months, statutory interest applies). Refunds may be subject to audit or requests for additional information before payment. Some industries (e.g. exporters or large capital investors) also have the right to request to join REDEME to get faster refunds.
• Exporters’ Refund Regime: Spain has a regime for regular exporters (businesses whose exports or intra-EU sales exceed 80% of total turnover) allowing them to request monthly refunds even if not formally in REDEME. Also, businesses making large investments can request a special refund treatment. These require separate applications or meeting certain criteria set out in the VAT law.

• For under-declarations of VAT (tax due was too low), the taxpayer should file a “declaración complementaria” – an additional return to report the omitted VAT and pay the difference. To encourage voluntary compliance, Spanish law imposes a surcharge instead of a penalty if the taxpayer comes forward before being contacted by the tax authority. The surcharge is 5% of the unpaid tax if paid within 3 months of the deadline, 10% if within 6 months, 15% if within 12 months, and 20% (plus interest) if more than 12 months late (these surcharges replace penalties when the taxpayer voluntarily corrects the error). If the tax agency discovers the underpayment first (e.g., in an audit), regular penalties apply (see Section 24). [fonoa.com], [fonoa.com]
• For over-declarations (too much VAT paid) or other errors in the taxpayer’s favor, the taxpayer can correct a subsequent return (if within the same year) or submit a rectificative claim (either via an amended return or a separate refund claim) within the 4-year limit. Typically, small errors can be adjusted in the next return by modifying the carryforward balance. If a refund is sought for a past period, Form 360 can be used to claim a correction (the tax office then reviews and issues a refund if justified).
• No Annual Reconciliations: Spain requires an annual summary (Form 390) for informational purposes, but it is not a reconciled “true-up” return (i.e., you cannot use it to adjust errors for the year; errors must be fixed via the Form 303 process or separate claims).

23. Other Filings

• Mandatory users: Large businesses (turnover > €6 million), those in REDEME (monthly refund regime), VAT groups under REGE, and companies who opt in. For these, SII is mandatory and they also file VAT returns on a monthly basis. [vatcalc.com], [vatcalc.com]
• Voluntary opt-in: Smaller companies can opt into SII (which also means switching to monthly filing) if they find benefits in real-time reporting (e.g., faster refunds or simpler compliance).
• Function: SII requires submission of specified fields from sales and purchase invoices (customer/supplier, date, amounts, tax type, etc.) through the AEAT’s online system (via XML web services). The data populates the taxpayer’s “immediate information” VAT ledgers on the tax portal.
• Benefits: Taxpayers under SII get extended deadlines for VAT returns (until the 30th of the following month instead of the 20th, since invoice data is already reported). They also do not file Form 390 or Form 347 (an annual local sales/purchase report) because the tax authority has all data. SII users can also utilize the Pre303 pre-filled return which significantly simplifies filing. [fonoa.com]
• Penalties: Failing to report invoices via SII on time can lead to fines (generally €0.5 per record up to €6,000 per quarter, or higher if data is falsified). However, Spain offered a grace period and has occasionally provided extensions (e.g., an “SII opt-out” until January 2026 for certain small businesses inadvertently brought into SII, and a postponement of new requirements like Verifactu to 2027).

24. Penalties and Interest

• Incorrect invoicing or record-keeping: Failing to issue a required invoice, or issuing one with incorrect required details, can lead to fines, typically a percentage of the invoice amount (e.g., 1%–2%) with minimum fines around €300. Using software that permits hidden sales (see Section 20) can trigger heavy fines (up to €50,000 per instance).
• Non-filing or false filing: Failure to file a VAT return, or filing incorrect returns leading to an understatement of tax, can result in a penalty equal to 50% of the unpaid tax (standard sanction). This can increase to 100% or 150% of the tax in cases of fraud or repeated offenses. These penalties can be reduced by 30% if the taxpayer accepts the assessment without contesting, and by a further 25% for prompt payment (commonly reducing a 50% penalty to 26.25% effective). [fonoa.com]
• Delayed 349 or Intrastat: Late or missing EC Sales Lists or Intrastat statements can yield penalties (often moderate if promptly corrected, but more severe if data is falsified). For instance, missing or erroneous ESL submissions might incur fixed fines (€200 per data element, up to certain caps).
• Interest on late refunds: If the tax authority takes more than 6 months to pay a requested refund (annual or Directive refunds), they must pay late interest to the taxpayer from the expiry of the 6-month period. The interest rate is the general rate for tax arrears (~3-4% annually) and is issued along with the refund. Taxpayers occasionally need to remind the AEAT to add interest for overdue refunds. [taxation-c….europa.eu]

• Canary Islands, Ceuta & Melilla: These territories are outside the scope of Spanish/EU VAT. The Canary Islands have their own indirect tax, the IGIC (Impuesto General Indirecto Canario), with a standard rate of 7% and lower rates of 0%, 3%, etc., and higher rates up to 15-20% for certain goods. Ceuta and Melilla levy a local tax called IPSI (Impuesto sobre la Producción, Servicios y Importación) with much lower rates (0.5% to 10%). Movements of goods from mainland Spain to these territories are treated as exports (no IVA, but IGIC/IPSI may apply upon arrival), and from these territories into Spain as imports (subject to IVA). Services between the territories and Spain have specific rules (often out of scope or exempt). Businesses trading with or within these areas should understand the different tax. [fonoa.com] [fonoa.com], [fonoa.com]
• Surcharge Regime (Recargo de Equivalencia): Spain has a unique scheme for small retailers who sell directly to consumers and do not process VAT input credits. Under the Recargo de Equivalencia regime, retailers do not file VAT returns. Instead, their suppliers charge them an extra surcharge on top of standard VAT (e.g., standard goods: 21% IVA + 5.2% surcharge) and remit that to the Tax Agency. The retailer simply folds the VAT into their prices to consumers and does not claim input VAT. This regime is mandatory for most small B2C retailers (individuals or small businesses with no processing of VAT) except those who opt to tax under the general regime. Suppliers must note the recargo on invoices. The surcharge rates correspond to the VAT rate (e.g., 5.2% for standard-rated goods, 1.4% for 10% goods, 0.5% for 4% goods). Retailers under this regime cannot deduct input VAT (since they effectively pre-pay it via the surcharge) and do not charge VAT to customers (it’s embedded in their retail price). This simplifies compliance for small shops but slightly increases their costs (they pass on the cost in consumer pricing).
• Simplified “Modules” Regime: Certain small businesses in specific sectors (like agriculture, small manufacturers, bars and restaurants under a size limit) may use a simplified VAT calculation method known as estimación objetiva or the “modules” system. Instead of calculating VAT on each transaction, their VAT due is determined via standardized “modules” (estimators) such as area of premises, number of employees, horsepower of vehicles, etc. This results in a fixed quarterly payment. While simpler, if actual input VAT exceeds output by a large margin, they may end up paying more than under normal rules (since the liability is fixed). Many small entrepreneurs use this only if it is beneficial; otherwise they register under the general regime.
• Investment Incentives: Spain allows certain incentives like a VAT credit for investment in new fixed assets for small businesses under the old simplified regime (which can reduce their fixed VAT quota), or accelerated refunds for exporters as mentioned. There are also special rules for VAT on property transactions (e.g., option to tax rentals, reverse charge on certain sales of immovable property between businesses to avoid Property Transfer Tax).
• Tourism & International Refunds for Travelers: Spain participates in the VAT refund for foreign tourists (“tax-free shopping” scheme). Non-EU visitors exporting goods in their luggage can get Spanish VAT refunded on purchases > €90.15. Retailers issue a tax-free form, and the tourist can obtain a refund (minus fees) through agents at exit points (airports, etc.) upon export validation. This doesn’t affect the retailer’s VAT, as such sales are treated as normal (the refund is handled by the refund operator and the tourist, with the retailer adjusting output VAT only if they participate directly in the scheme).
• Clarity on Mixed Use Items: Spain, like some countries, applies specific fixed deduction percentages: e.g., for passenger cars used for both business and personal purposes, generally 50% of the VAT on purchase/lease and operating costs is deductible without needing to prove business use. This is a simplification if the car is not used exclusively for business. If a company claims more than 50%, it must substantiate the higher business usage. [2026 01 10 Belgium | Word]
• Second-Hand Goods and Travel Agents: Spain applies the Margin Scheme (Regímenes Especiales de Bienes Usados, Objetos de Arte, Antigüedades y Objetos de Colección) for dealers in used goods, art, etc., and the Special Travel Agents Scheme for travel agencies (which taxes only the agency’s margin and treats the agent as the tourist’s supplier for VAT). These mirror EU-prescribed schemes and are important for businesses in those sectors.
• Other Territorial Taxes: Some services in Spain may have parallel local taxes (e.g., a local Tourist Tax on hotel stays in certain regions, separate from VAT). These are not VAT but can affect pricing. They are outside the VAT base if they are truly taxes (and should be listed separately on invoices).