VAT Registration


VAT Registration

In order to start operations in Spain as a foreign entrepreneur, you must issue your CIF (“Código de Identificación Fiscal” in Spanish) or your NIF (“Número de Identificación Fiscal in Spanish). Both are Tax identification numbers, CIF is for companies and NIF is for individuals or professionals. These numbers along with your NIE allow you to fulfill your taxes duties whether you are in Spain or not and, whether you need to acquire a property, shares in a Spanish company, import goods to Spain or open a corporate bank account.

Our attorneys count with years of experience dealing with VAT (Value Added Tax) registration process and tax calculation and declaration. We can help you to get all your documents and tax status ready when opening your business, keep up to date your tax payment before the Spanish Tax Office which is la Subdirección General de Información y Asistencia Tributaria del Departamento de Gestión de la Agencia Estatal de Administración Tributaria in Spanish and even become in your appointed attorney in fact to solve any matter in connection therewith.

You must remember that for VAT purposes, it will only be considered as the Spanish territory the peninsula plus the Balearic Islands for it does not include the Canary Islands, Melilla and Ceuta.
There are two different modalities for those entrepreneurs who wish to trade any good or operate in Spanish territory according to the country’s current legislation:

  • Permanent establishment in Spain: This is for those foreign companies who are operating in Spanish Territory and are subjected to VAT. They must apply for it at the tax office located near the address of the company.

  • Not permanent establishment in Spain: those foreigners who do not count with an office in Spanish territory and are subjected to VAT must apply for it through their appointed tax representative (which is mandatory) at the nearest tax office where they intend to carry out the business in connection thereof.

In general, you must submit certain requirements if you wish to issue your VAT registration; however, the most important is a document stating the existence of the company or the person’s professional activity and the justification of such company or activity in Spanish territory. In this case you could submit the deed of incorporation of your company and/or the registration of it in the corresponding registration office.

Depending on the type of company you are willing to set up in Spain, you will have to apply or charge a different Tax rate. For instance, certain goods such as hotels, restaurants or entertainment products count with a Tax rate of a 10%; however, other services are exempt from Tax such as medical services fees doctors, dentists, among others. Considering the aforesaid, it is important to count with your NIF or CIF if you are looking forward to claim a VAT refund at any point as well.

All the documents that you submit before the Tax Office must be absolutely clear and authentic; thus, they must have been translated into Spanish (translated by a certified interpreter) and duly legalized with the Hague Apostille.

Please note that if the company to be incorporated is not registered for VAT in Spain but trade goods which come from an EU country for Spanish clients who do not pay VAT and such transaction exceeds the minimum of 35,000 Euros, the company shall register and be subjected to VAT in Spain.

We offer different legal solutions and services in relation to the VAT registration. Our attorneys will represent your interest in the best possible way, based on the grounds of confidentiality and professionalism. Contact us now and be up to date with your taxes payment.