Photo: La Coruña
VAT Spain rates and returns
VAT must be paid by SMEs on a quarterly basis in Spain and by the large company on a monthly basis. You will find rates and general information below. First we let you know about real time obligations:
Important: “real time”
Spain has introduced a system of almost “real-time” delivery of VAT information in July 2017.
This system is relevant for the following companies that have to file a VAT return every month:
• Companies registered in the Register of monthly VAT returns (REDEME).
• Companies that have invoiced more than 6 million euros in the previous financial year.
• Tax units.
More English-language information about this can be read in Major changes VAT declarations Spain.
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The general VAT rate in Spain has increased from 16% to 21% in a few years. There is a reduced rate of 10%, including for real state, and a special rate of 4%. The latter is only applicable in exceptional cases.
VAT Rate Examples
High 21% Most services and products
Low 10% New homes
Special 4% Unprocessed food ingredients
Recovery can be standard (under the ‘regular regime’) only in January. Usually the VAT is refunded after about five months or a message is received that an inspection will take place.
Companies can request the tax authorities to qualify for a special regime (also known as the export regime) which must be filed monthly, but which also means that VAT can be reclaimed monthly.
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We can take over the entire tax administration for the Spanish subsidiaries of foreign parent companies and take care of all tax returns.
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