VAT registration in Spain for foreign companies: when is it required?

You sell goods or services to Spanish customers. Someone tells you that you need to register for VAT in Spain. But do you actually need to? And if you do — how? Foreign companies are often surprised to discover that Spain’s VAT rules can require registration even when they have no office, no employees, and no physical presence in the country. Here is a clear guide to when it’s required and what it means in practice.

Spain’s VAT (called IVA — Impuesto sobre el Valor Añadido) is governed by EU VAT Directive 2006/112/EC as implemented in Spanish law. Foreign companies — whether from inside or outside the EU — can be required to register for VAT in Spain depending on the nature and location of their taxable transactions.

When does a foreign company need to register for VAT in Spain?

Selling goods physically located in Spain

If a foreign company imports goods into Spain and then sells them to Spanish customers, the sale constitutes a taxable supply in Spain. The foreign company must register for VAT in Spain and charge IVA on those sales.

Distance selling to Spanish consumers (B2C)

Since July 2021, the EU’s OSS (One Stop Shop) reform changed the rules for distance selling. If a non-Spanish EU company sells goods to Spanish private consumers and its total cross-border B2C sales across the EU exceed €10,000 per year, it must account for VAT in the buyer’s country. It can do this either by:

• Registering for the EU OSS scheme in its home country (which covers all EU sales from one registration), or
• Registering directly for VAT in Spain

Providing services with the ‘place of supply’ in Spain

For B2C services, the general rule is that VAT is due where the customer is located (for digital services and most electronically supplied services). B2C digital services to Spanish consumers may require VAT registration in Spain or use of the EU OSS scheme.

For B2B services, the reverse charge mechanism generally applies — the Spanish business customer accounts for VAT, so the foreign company does not need to register in Spain solely for B2B service supplies.

Importing goods into Spain for sale or use

When a foreign company imports goods into Spain — even if they are ultimately re-exported or used within a supply chain — import VAT (IVA a la importación) is due at the point of entry. Depending on the structure, the company may need a Spanish VAT number to reclaim import VAT.

Storing goods in a Spanish warehouse

If a foreign company stores inventory in Spain (including Amazon FBA fulfilment centres or other 3PL warehouses), this typically creates a VAT registration obligation in Spain — even if the company has no legal entity there.

Non-EU companies: special rules

Non-EU companies face additional complexity. In general, non-EU companies that make taxable supplies in Spain must register directly for Spanish VAT — they cannot use the EU OSS or Mini One Stop Shop (MOSS) schemes for non-digital services. They may also need to appoint a fiscal representative in Spain, depending on their country of establishment and the specific type of transaction.

How to register for VAT in Spain as a foreign company

The registration process involves:

• Obtaining a Spanish tax identification number (NIF) — companies use a CIF (Código de Identificación Fiscal)
• Submitting Form Modelo 036 to the AEAT (Spanish Tax Agency) — this is the census declaration that registers the company for VAT purposes
• If required, appointing a fiscal representative in Spain (mandatory for non-EU companies in some cases)
• Providing company incorporation documents, translated and apostilled where required

Registration can take several weeks. It is important to register before making taxable supplies — retrospective registration is possible but creates compliance and penalty exposure.

What are the ongoing VAT obligations in Spain?

Once registered for Spanish VAT, a foreign company must:

• File quarterly VAT returns (Modelo 303) — or monthly if the company’s turnover exceeds €6 million
• File an annual VAT summary return (Modelo 390)
• Issue Spanish-compliant invoices for taxable supplies
• File an Intrastat declaration if trading goods with other EU member states above the threshold
• File a Modelo 349 (Recapitulative Statement) for intra-EU B2B transactions

VAT returns must be filed even in periods with no activity (filing a nil return). Failure to file on time results in automatic surcharges and interest.

VAT rates in Spain

Spain applies three VAT rates:

• 21% — the general rate, applicable to most goods and services
• 10% — reduced rate for food, transport, hospitality, certain construction work, and other specified items
• 4% — super-reduced rate for basic foodstuffs, books, newspapers, medicines and certain other goods

Foreign companies must charge the correct Spanish VAT rate on their supplies — errors in rate application are a common audit finding.

Frequently asked questions

VAT compliance in Spain is not optional — and the rules change frequently. At Capital Auditors & Consultants, we help foreign companies navigate Spanish VAT registration, filing obligations, and cross-border VAT planning. Contact our team before your first Spanish transaction.