A fiscal representative in Spain is an appointed agent who handles the prompt tax submissions for the business. According to law, non-EU companies need to appoint such an agent if they are registered for VAT purposes.
Our specialists in company formation in Spain assist EU and non-EU businesses and can provide clarifications and specialized services for the latter types of companies.
If you would like to receive personalized information about the VAT obligations applicable to your business, we can answer your questions even before starting the process to set up a company in Spain.
Read below to learn more about the fiscal representative and how you can observe some of the most important tax obligations applicable to companies that are doing business in Spain.
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What types of companies need a fiscal representative in Spain?
Non-EU companies that wish to do business in Spain and do not have a permanent establishment in a European Union Member State need to appoint a fiscal representative.
Although the requirement to appoint such as representative is mandatory for non-EU-based companies, you can also benefit from having a local fiscal or tax representative in Spain if your company is registered in a European country. A local representative will be able to handle any issues that arise relating to the payment of taxes to the Spanish authorities, as well as assist in other essential matters.
A fiscal representative can be a natural or a legal person, however, residency requirements apply. Th appointment is usually handled as part of the general company formation steps, with the acting representative signing a notarial deed for this purpose.
If you are planning on opening a company and need services such as those for a virtual office, or a fiscal representative in Spain, our team can assist you.
What are the duties of a fiscal representative?
The representative will be tasked with the following:
- Handle the procedure to obtain the EORI number in Spain;
- Perform the VAT registration of the company and receive the VAT number;
- Comply with the monthly or quarterly VAT submissions and payments;
- Resolve any issues, inquiries, or requests from the Spanish tax authorities; These requests will be handled in a timely manner and in full compliance with the requirements.
Our team provides services attributable to a fiscal representative in Spain and can provide you with more information about this type of service upon request.
What are the main VAT obligations in Spain?
Value-added tax is imposed in Spain on the sale of goods and services provided for within the Spanish VAT territory (certain areas apply their own taxes, such as the Canary Islands). The main VAT requirements are the following:
- The standard VAT rate is 21%;
- Three reduced rates of 4%, 5%, and 10% apply to certain types of goods and services;
- Some types of transactions are exempt or zero-rated;
- VAT registration is mandatory for all companies or entrepreneurs that engage in VAT-taxable activities in the Spanish VAT territory; our agents who specialize in company incorporation in Spain can give you more details about the regions that fall under the scope of the Spanish VAT, according to where your company will be based;
- VAT filing and payment are done monthly for companies with a turnover that exceeds EUR 6 million in the previous period; in other cases, the filing and payment take place on a quarterly basis.
A fiscal representative in Spain will make sure that the company remains compliant with the filing dates, as well as the general filing requirements.
Apart from the VAT requirements, businesses in Spain are also expected to comply with filing tax returns and paying other types of taxes, such as the 25% corporate income tax. For complete solutions, we recommend reaching out to our specialists in accounting and bookkeeping in Spain.
If you want to know more about the services we provide and the solutions for your company’s fiscal representative in Spain, don’t hesitate to get in touch with us.