- Overview of VAT in Spain: Spain’s VAT system, governed by Law 37/1992 and aligned with the EU VAT Directive, applies to most goods and services, as well as imports. Businesses must register for VAT regardless of their turnover, with non-EU businesses requiring fiscal representation.
- VAT Rates and Registration: The standard VAT rate in Spain is 21%, with reduced rates of 10% and 4% for specific goods and services. All resident and non-resident businesses engaging in taxable activities in Spain must register for VAT, with no registration threshold.
- Compliance and Filing: Monthly and quarterly VAT returns must be filed and paid by the 20th day of the following period. E-invoicing is mandatory for B2G transactions, and large taxpayers must report data within 4 days using the SII system. VAT on digital services is applied based on the consumer’s location, with the OSS system used for EU cross-border services.
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- See Country VAT guides for other countries
- VAT Country guides of the European Union Countries
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