What is IVA? The VAT of Spain

Updated on July 20, 2022


Here’s everything you need to know about IVA, the VAT of Spain. IVA rates, types of products, exceptions, your obligations…

In Spain, there are a variety of activities and services that are not subject to VAT:

State-sponsored or accredited institutions of higher learning.
All levels of education can benefit from tutoring in areas that are part of the standard school curriculum.
Governed or subsidized sports facilities and services.
Museums, libraries, seminars, and conferences are examples of cultural services.
Creative and scientific thinkers and doers of the written word, composers, and translators.
Services provided by the postal service.

IVA / Spanish VAT obligations

If you are selling items or offering services that are taxable, you must add the applicable IVA rate and register your business activity before you begin selling or delivering services. Serious repercussions will follow if you fail to comply.

As soon as a company is registered for VAT in Spain, it is subject to the following obligations:

Provide them with a thorough invoice, and maintain a copy for your own records. Nevertheless, a simplified invoice can be produced in Spain when the total amount does not exceed €3,000 including VAT, for example in retail sales.
Request an invoice from suppliers and keep it in order to deduct VAT.
Ensure that the following documents are kept on file:
Invoices were sent out.
Invoices have been sent out.
Investing in the property.
A transaction that takes place within a community.
Prepare and submit periodic tax returns (monthly or quarterly) using the following forms and deadlines.

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Large businesses

Those taxpayers and enterprises covered by the special regime for groupings of firms who are on the monthly refund register must electronically submit Form 303 (Self Assessment) on a monthly basis. Forms 322 and 353 must be filed on time for each monthly settlement period, or until February’s tax return settlement for January, if applicable. Since the Tax Agency E-Office mandates that these individuals preserve VAT records, they will not be required to file Form 390.
When it comes to filing quarterly reports, taxpayers must do so on the first of each month for the first three months; they must do so for the fourth quarter on January 1st for the annual summary statement.
There will be a tax return for the period of time in which no money was paid or returned.
On April 1, July 1, October 1, and from January 1 to 25 each year, direct debit can be used to electronically submit the Self-Assessment Form 303. (filed quarterly). During the month after a settlement period, Form 303 can be filed at any time.
If you’re a high-income taxpayer in Spain, you must file your tax return electronically using an advanced electronic signature if you’re registered with the Central Office of High-Income Taxpayers or any of the Large Company Management Departments (electronic signature or DNI-e).
If you are a Spanish businessperson or professional, you must file your tax returns using Form 303. (generated using the printing service found in the E-Office).
Please don’t hesitate to get in touch with us if you have any questions concerning VAT or how to register in Spain. If you have any questions concerning Spanish VAT rates or any other area of Spanish rates and taxes, get in touch with a team of Tax Advisors.

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