VAT in Spain: Rates, Registration, Returns & Key Rules

Most goods and services in Spain are taxed at 21%. This tax is called IVA. Sell anything in Spain, and it applies straight away. Below we cover the rates, the registration steps, filing your returns, and the Verifactu deadline.

Key Takeaways

• IVA runs at 21% as standard. Some goods and services drop to 10% or 4%.
• Spain has no registration threshold. You register from your first taxable sale.
• Your VAT number is your NIF with the prefix "ES" added for EU transactions.
• Returns are filed quarterly by default, or monthly for larger businesses.
• Certified invoicing software becomes a requirement under Verifactu from 1 January 2027 for Corporate Income Taxpayers, and from 1 July 2027 for all other taxpayers

What is VAT in Spain?

VAT applies to most goods and services across Spain. Locals know it as IVA. It stands for Impuesto sobre el Valor Añadido. The AEAT is the authority that manages it.

Businesses collect IVA from their customers. They then pay it to the AEAT, after taking off the IVA they paid on their own costs. The final customer carries the cost. Your business simply passes the tax along.

VAT Rates in Spain

Spain has three main IVA rates, plus a zero rate. The rates held steady into 2026.

One thing to note. The Canary Islands, Ceuta, and Melilla are not part of the Spanish IVA system. The Canaries use their own tax called IGIC, with a 7% standard rate.

VAT Number in Spain

In Spain, your VAT number and your NIF are one and the same. NIF stands for Número de Identificación Fiscal, and every business and freelancer has one.

If you're invoicing customers in Spain, use your NIF. Once you trade with EU businesses, the same number gets an "ES" prefix. It then becomes your intra-community VAT number, or NIF-IVA. This only happens after you register for EU trade, not automatically.

A Spanish NIF has nine characters. It's usually a letter, seven digits, and a final check character. You may also hear the old term CIF. That was the tax ID for companies, but it merged into the NIF in 2008. If someone asks for your CIF, give them your NIF, since it's the same number.

VAT Registration in Spain

Spain has no registration threshold. You must register before your first taxable sale. This is a key difference from countries like the UK, which let small businesses stay under a threshold.

You register using Form Modelo 036. This applies to all businesses and freelancers. Modelo 037, the simplified form previously used by freelancers, was abolished in February 2025. All registrations now go through Modelo 036. To trade with EU businesses, tick the box for ROI registration on the same form, which activates your NIF-IVA.

Expect the process to take two to four weeks, provided your paperwork is complete. That paperwork means Form 036, proof of your business activity, and ID for whoever signs. Anything in another language needs a certified Spanish translation.

There's an important rule for non-EU businesses. If your company is based outside the EU, you generally must appoint a Spanish fiscal representative. This representative deals with the AEAT for you and shares liability for unpaid VAT.

VAT Returns & Filing in Spain

Most businesses file VAT returns quarterly. For the first three quarters, the deadline is the 20th of the month following the quarter end (April, July, and October). The fourth quarter return must be filed between 1 and 30 January of the following year.

Bigger businesses report monthly instead. This applies to companies with turnover above €6,010,121.04 and to those in the SII system. SII means near real-time invoice reporting, where you upload invoice data to the AEAT within four business days.

You also file an annual summary return, called Modelo 390, between 1 and 30 January of the following year.

How E-Invoicing Impacts VAT Compliance in Spain

E-invoicing is changing how Spanish businesses handle VAT. The main rule to know is Verifactu.

Verifactu is changing how businesses issue invoices in Spain. Under Royal Decree 1007/2023, only certified invoicing software will be allowed. Corporate Income Taxpayers fall under it from 1 January 2027. Other companies and the self-employed follow from 1 July 2027. The software must prevent invoice records from being altered and add a QR code to each invoice. Word files and regular spreadsheets won't comply.

Carry on with non-compliant software past the deadline, and the fines reach €50,000 a year. Picking a Verifactu-ready tool early saves the headache.

Cross-Border & EU VAT Rules

Selling across borders brings extra rules. Here are the main ones.

For sales to EU businesses, you need to be in the ROI register. Check your customer's VAT number on the VIES system before you invoice them. Sales of goods to VAT-registered EU businesses are usually zero-rated.

You may also need to file an EC Sales List for your intra-community supplies. If you move enough goods within the EU, you file Intrastat too. The threshold for Intrastat in Spain is €400,000.

For B2C e-commerce across the EU, the One Stop Shop (OSS) scheme lets you report the VAT through a single return, rather than registering in each country.

VAT for Freelancers & Small Businesses

Freelancers in Spain are called autónomos. There's no VAT-free threshold for small businesses in Spain. IVA applies from your first sale.

Most autónomos register using Modelo 036. You add IVA to your invoices, then file it every quarter. You can also reclaim the IVA on your business costs.

One point often trips people up. Spanish freelancers may also apply IRPF, a withholding tax, on invoices to Spanish businesses. IRPF never applies to private consumers or to foreign clients. Keep your invoice numbering in strict order too, with no gaps or duplicates.

VAT Refunds in Spain

Sometimes the IVA you pay on costs is more than the IVA you collect. When that happens, you can carry the excess forward, or claim a refund.

Most businesses claim any refund on the final return of the year. Businesses in the REDEME register can claim monthly refunds instead, which helps cash flow.

Non-EU visitors can also reclaim IVA on goods they buy in Spain and take home. Foreign businesses without a Spanish presence can use special EU refund procedures for the IVA they pay here.

Conclusion

VAT in Spain rests on a few clear points. The standard rate is 21%, there's no registration threshold, and returns are usually quarterly. Your NIF is your VAT number, and Verifactu will soon require certified invoicing software. Get your registration done early and use compliant software. It will make VAT much easier to handle.