Register for VAT in Spain

The process of registering for VAT in Spain is open to international companies.

IVA (Impuesto de Valor Añadido) is currently 21% in Spain.

Companies of any nationality are able to obtain a CIF registration number, which ensures registration for VAT in Spain.

Currently, there is no VAT threshold in Spain. Unlike in many countries VAT is chargeable on invoices regardless of volume of sales.

The exception is for distance sales. In this case the threshold is €35,000. If stock is held in Spain, then VAT registration is mandatory.

Do I need a VAT number in Spain?

There are many reasons that as a foreign company you may be considering obtaining a Spanish VAT number.

Examples of circumstances where a company would require to be VAT registered in Spain are:

• Distance sales of goods to consumers
• Importation of products into Spain
• To hold goods in transit
• To reclaim VAT paid
• To reverse charge VAT
• To hold a conference in Spain
• To hold an exhibition
• To conduct training programmes
• Any other chargeable event or service

At what point might it be better to establish a Spanish company?

Purely obtaining a CIF number and being VAT registered in Spain if suitable if you do not have a physical presence in the country.

A physical presence can mean an office, warehouse, store etc. This is considered a permanent establishment.

In this case, you would need to register a company or branch in Spain.