Determining VAT Turnover of Non-Resident Companies in Spain: Criteria and Implications

• Non-resident companies operating in Spain without a permanent establishment must register for Spanish VAT purposes
• These companies must file quarterly and yearly summary VAT returns and keep Spanish VAT registers
• Companies with a turnover exceeding 6,010,121.04 Euros become “big companies” and must modify their VAT status
• Monthly VAT returns must be filed and the company must comply with the Immediate Information Supply (SII) reporting obligations
• Determining the Spanish VAT turnover for non-resident companies with direct registration is not clear
• The Spanish Tax Agency includes local sales in the VAT turnover, even if they are not taxable
• This criterion is contrary to the definition of “turnover” in the Spanish VAT Law
• Non-resident companies should check box 108 of the yearly VAT summary return to determine if they are a “big company”
• If the amount of not subject local sales is the reason for becoming a “big company,” the company should consider claiming against the modification of their VAT status.

Source: ivaconsulta.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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