Understanding Spanish VAT

This section provides an overview of Spanish VAT.

If you work with Spanish VAT, you should understand these terminology and principles:

• VAT returns for each month must be completed on a special form and filed with the local tax office on the 20th of the month.

• You must pay any excess output VAT over input VAT at the time of filing.

• To be exempt from VAT, the business must work within these guidelines:

  • Goods must be physically moved to another EU-member country.

  • Customers must have VAT identification codes.

  • Invoices must display applicable VAT numbers.

  • Goods cannot be of a special category, such as vehicles.