Pay VAT in Spain – The 2025 Ultimate Guide for Businesses & Freelancers
What Is VAT and How Does It Work in Spain?
Overview of IVA (Impuesto sobre el Valor Añadido) .
In Spain, VAT is known as IVA (Impuesto sobre el Valor Añadido). It is a consumption taxadded to most goods and services and collected by businesses on behalf of the government. In practice, you charge VAT to your clients, and then you declare and pay it to the Spanish tax office.
Current VAT Rates in Spain.
Spain applies three main rates:
- 21% Standard rate – applied to most goods and professional services.
- 10% Reduced rate – applied to food, cultural events, public transport, and hospitality.
- 4% Super-reduced rate – applied to essential items like bread, milk, books, and medicine.
Example: If a freelancer in Madrid bills a client €1,000 for consulting services, they must add 21% VAT (€210) and declare this in their quarterly return.
Who Needs to Pay VAT in Spain?
Businesses and Self-Employed (Autónomos).
Non-resident companies selling to Spanish customers — whether directly or via platforms like Amazon or Alibaba — may also need to register for VAT.
Foreign Companies with Spanish Operations.
Platforms like Amazon, Temu, and Alibaba, and ship products to EU customers, OSS saves you from registering for VAT separately in each country.
Example: A U.S. e-commerce seller using Amazon warehouses in Spain must register for a Spanish VAT number and file returns.
How to Register for VAT in Spain
Applying for a Spanish VAT Number (NIF).
To pay VAT in Spain, you need aNIF (Número de Identificación Fiscal).This is your tax ID number for invoicing and filings.
Documents Required for Registration.
- Proof of identity (passport or incorporation documents).
- Power of attorney (if you appoint a representative).
- Description of your Spanish activities (e.g., contracts or invoices).
Appointing a Tax Representative.
Non-EU businesses must appoint a fiscal representative in Spain to handle VAT matters.
Example: A Chinese seller on Temu delivering products to Spanish consumers needs a Spanish VAT representative to comply with local tax laws.
Filing VAT Returns in Spain
Types of VAT Returns: Monthly vs. Quarterly.
- Quarterly (Form 303): Standard for autónomos and most SMEs.
- Monthly: Required for large companies or those with frequent refund claims.
Using Form 303 and Form 390
- Form 303: used for ongoing VAT declarations.
- Form 390: n annual summary of all VAT operations, filed every January.
Payment Deadlines and Methods
- Quarterly returns:: used for ongoing VAT declarations.
- Monthly returns:: n annual summary of all VAT operations, filed every January.
Example: An SME selling fashion items on its own website must declare every quarter how much VAT it charged in Spain and pay it by the due date.
Penalties for Non-Compliance
Late Filing or Incorrect Returns.
Penalties can range from €150 to €6,000 , depending on the seriousness of the error or delay.
Audits and Inspections.
Spain’s tax authority (Agencia Tributaria) can audit businesses — especially e-commerce sellers with cross-border transactions, where errors are common.
How Strong Abogados Can Help You Stay Compliant
At Strong Abogados, we help:
- Freelancers and autónomos – with VAT registration, bookkeeping, and returns.
- Foreign e-commerce sellers – with fiscal representation for Amazon, Temu, or Alibaba sales.
- SMEs and corporations – with compliance, audits, and refund claims.
Our legal team ensures your VAT process is accurate, efficient, and fully compliant with Spanish law.
FAQs
- Can I pay VAT online in Spain?
Yes — through the Agencia Tributaria portal with a digital certificate. - Do all freelancers need to charge VAT?
No — certain professions (e.g., healthcare, education) are exempt. - How long does VAT registration take?
Normally 2–4 weeks, depending on documentation. - Can Alibaba sellers register in Spain?
Sometimes — but sellers remain responsible for ensuring complianc. - What happens if I don’t declare VAT?
You risk fines, interest, and possible audits from Agencia Tributaria.
Conclusion
To pay VAT in Spain properly, you need clear knowledge of the system, timely declarations, and — in many cases — expert legal support. Whether you’re a local freelancer, a growing SME, or an international seller using Amazon, Temu, or Alibaba, VAT compliance is not optional.
Strong Abogados makes sure you meet every obligation while protecting your business from costly mistakes.
Author Note
Pura Strong is Spain’s leading expert in anti-money laundering (AML), a certified SEPBLAC specialist, and President of the Anti-Crime Certification Institution. She is an author, media commentator, and fearless advocate known for denouncing corruption — and surviving it.
