VAT Registration in Spain

Companies need to register for VAT (IVA) purposes with the local tax authorities in Spain and they have to take the necessary measures so that their business complies with the tax regulations in their business field. Our team of specialists in opening a company in Spain can advise on the tax registration procedures that are applicable to the VAT in Spain. Investors can obtain consultancy services that are related to all the corporate taxes from our specialists. 

Below, you can read about two scenarios of importance to those who are interested in doing business in Spain: VAT registration and obligations for foreign companies that operate in Spain and secondly, VAT registration obligations for locally registered companies (business entities incorporated as per the Spanish Company Act).

Spanish VAT registration for foreign companies in Spain

VAT registration in Spain is mandatory for all companies that carry out transactions in this country. This means that non-European companies are also required to register for VAT in Spain; however, they cannot apply for this registration themselves (as a locally-incorporated company would).

To register a foreign (non-European) company for VAT purposes in Spain, a VAT representative is appointed. This can be a local legal person who will handle the registration process in the foreign company’s name.  The requirement to appoint a VAT representative (or not) is discussed in greater detail below, in our frequently asked questions section.

If you are a foreign investor interested in VAT registration in Spain for a non-European company, our team can act on your behalf. Thus, you can rest assured that the VAT obligations are duly observed for your foreign company trading in Spain.

VAT Registration for a Spanish company

As a general rule, commercial entities obtaining taxable income from the sale of goods and services in Spain are required to register for VAT. Below, we present the main categories of commercial entities that have to apply for a VAT number in order to pay VAT in Spain:

• Companies importing goods into the Spanish territory, even in the case in which the goods are to be sold in another EU market;
• Entities selling goods or services (and entities purchasing goods and services) which are not Spanish companies that were issued with a VAT number;
• The sale of goods and services through the internet is also charged with VAT;
• Companies storing goods in warehouses in Spain, as these premises are considered permanent establishments;
• Companies organizing live events and exhibitions that charge admission fees to such events. 

Investors who open a company in Spain that engages in VAT-taxable supplies of goods or services must start the process to register for VAT in Spain before they start the business activity that is subject to this tax. This is mandatory because, unlike in other countries, there is no minimum VAT registration threshold applicable in Spain.

Our team that can help you with company incorporation in Spain can also handle the mandatory process for VAT registration, if the company you are opening will be involved in business transactions that are subject to this tax.

Some of the documents you will have to prepare for VAT registration in Spain include the company’s articles of association, a fully filled-in application form (our team will make sure that you submit the correct form), the identification documents belonging to the company’s representative, and others.

Once all the documents are in order, the application is delivered to the Tax Agency. It can take about one month for the authorities to process the application and issue the VAT number.

The Spanish VAT number consists of the country’s prefix (for intra-community transactions), followed by eight digits.

Current VAT rates in Spain (IVA tax in Spain)

The Spanish value-added tax has a standard value of 21% for most goods and services, but reduced rates of 10% and 4% also apply. There are also VAT updates in Spain for 2026, and here are the main changes:

• Standard value of 21% for most goods and services;
• Reduced rate of 4% for dairy products, fruits or cereals, books, newspapers, magazines, advertising, medicinal products;
• Reduced rate of 10% for foodstuffs (except for those that fall under the lower 4% rate), passenger transport, certain plants, amateur sporting and events;
• An exemption from this tax applies in the case of intra-EU supplies of goods and the export of goods (when the said products are VAT-exempt and other conditions apply);
• A distinction is made between exempt goods and zero-rated goods or services.

Our team of experts who can help you with company formation in Spain can also answer questions about the standard, reduced, and super reduced VAT rates.

What should Spanish businesses do once they are registered for VAT?

Businessmen who want to open a company in Spain in 2026 should know that once their business is registered for VAT purposes, specific procedures must be completed. Our consultants in company incorporation in Spain can offer step-by-step advice on the following procedures, which must be completed by all VAT payers in this country: 

• Issuing invoices specifying the disclosure details, as per the Spanish tax legislation;
• Issuing electronic invoices containing specific aspects, such as the electronic signature;
• Keeping and maintaining the company’s accounts and records, for a period of 10 years;
• Issuing invoices for customers buying goods or services in Spain;
• Process credit notes using the correct foreign currency rates. 

Those entities that are liable for the payment of VAT should take the necessary measures in order to register for the payment of this tax. This is also necessary for foreign entities selling goods on the Spanish market. As a foreign trader, VAT registration in Spain in 2026 is done by completing Form 036, a document that must be signed and submitted. This can be done in person or by accessing the online platforms of Spanish tax institutions. 

What documents do Spanish VAT payers have to provide?

Businessmen who want to open a company in Spain that is charged with the VAT should also be aware of the fact that if they have obtained their VAT number, additional requirements, other than the ones mentioned above, must be completed. In this sense, the company may need to complete the EC Sales List, a document that is also requested for the sale of services, not only for the sale of goods.

This document is generally requested if a Spanish company that was issued a VAT number makes an intra-community supply. This document has to be completed on a monthly basis, and it must be submitted to the local Spanish authorities. It is legally required to submit this document on a monthly basis as long as the value of the products is above EUR 35,000. In the case in which it is below this value, then the document can be submitted on a yearly basis. 

What are the VAT regulations for Spanish sole traders? 

One of the ways to carry out a commercial activity in Spain is by opening a sole trader. Since the sole trader does not represent a separate legal entity than its owner, the tax requirements and tax compliance measures are different from those in the case of corporate entities. Sole traders in Spain that develop a taxable activity are thus required to register for taxation, including for VAT. 

The VAT registration in Spain in 2026 is compulsory for a sole trader if the services or the products sold by the company’s owner are liable for VAT. If so, the Spanish sole trader should prepare the specific documents necessary for the payment of the VAT and submit them on a quarterly basis. If the sole trader is liable for various taxes, including VAT, it must be registered with the Spanish Tax Office (Agencia Tributaria). 

The video below offers more details on the IVA tax in Spain:

VAT updates in 2026

Here are some VAT updates in Spain to consider in 2026:

• There are no changes to VAT rates in Spain in 2026, and the tax for energy bills remains the same, at 21%.
• The reporting requirements must be done through the electronic invoicing system named Verifactu, which will soon be mandatory for small & medium enterprises in Spain.
• In the Canary Islands, there is no VAT, but a tax called IGIC (Impuesto General Indirecto Canario), ranging from 3% to 7% for various bills & services.
• Companies exceeding EUR 400,000 per year in trade throughout the European Union must file Intrastat reports.

Setting up a company in Spain also requires tax registration. If you would like to perform all the registration procedures, please contact our Spanish agents and find out more about the procedures involved. We can guide you step by step inopening a company in Spain in a fast and reliable manner.