VAT Returns in Spain
Frequency of Spanish VAT returns
As a general rule, VAT returns are filed quarterly in Spain. The quarterly periods follow the calendar quarters, from January to March, April to June, July to September, and October to December.
However, monthly VAT returns are due in certain scenarios: the Spanish revenue of a business exceeds the 6,010,121.04€ threshold (large company) during the previous calendar year, Monthly Refund Scheme registration, and for SII filers. Regarding the large company's threshold, all outgoing invoices are taken into account, including exempt and zero-rated supplies, while all incoming invoices should be disregarded.
In Spain, there is no annual periodicity for VAT returns, not even for small enterprises. However, most companies submitting periodic VAT returns must submit an Annual VAT return which is a summary return of the figures reported during the year.
Frequency of filing
Due date of Spanish VAT returns
Spanish VAT returns are filed on a quarterly basis unless the monthly reporting period is applicable. The quarterly and monthly VAT returns are due by the 20th day of month, except for the December and Q4 returns, which are due by the 30th January.
Due date rules
If the due date falls on a Saturday, Sunday or bank holiday, the date is shifted to the next working day. The Spanish authorities publish calendar with all tax due dates.
Spanish annual VAT returns
Most companies registered for VAT purposes in Spain and filing quarterly VAT returns must submit an additional annual VAT return by the end of the year. This is a recapitulative return for informative purposes, therefore no VAT payment is due upon its submission. This return is also known as modelo 390. Instructions are published by the tax authorities and updated if necessary, every year.
Annual VAT returns is Spain must be submitted no later than the 30th day of January following the reporting period. If this day falls in weekend, deadline will be moved to the next working day.
Spanish Annual VAT return is not due in the following cases:
- If the company is submitting the SII books there is no obligation to submit the Annual VAT – this could be case of a company under REDEME (monthly refund regime), VAT groups, or Big companies – “Grandes empresas” with an annual turnover higher than 6 M € threshold.
- Companies under simplified VAT regimes related to rental of immovable property.
Concerning companies filing monthly VAT returns and SII Books, although they do not have to submit the Annual VAT return, they must complete an extra section in the December VAT return (or modelo 303) to report the details of the annual turnover.
In the year-end annual summary, the taxpayer must report the activity code (CNAE) carried out in Spain and the annual net amounts for the relevant types of transactions declared during the year.
Spanish VAT payments
There are two methods for making VAT payments in Spain: i) the NRC code method, or ii) by making a bank transfer from a foreign bank account.
NRC Code method
This method must be done from one of the authorized banks in Spain (most retail banks are included). Payment can usually be made at the branch of a collaborating bank or online through the Spanish bank, subject to the bank's process and identification requirements (for example, digital certificate access).
The list of authorised bank is publishec by the tax authorities.
When requesting the payment, you must provide the VAT number, name, period, form submitted, and amount paid to the bank. Once the payment is made, the bank will issue the so called "NRC code" which you need to enter in the VAT return before submitting it. This is, it is not possible to submit Spanish returns without having made the corresponding VAT payment. The bank account can be on the name of any other person.
Only in case the payment is made through the website of the Spanish tax authorities, the bank account must be on the name of the tax payer or its fiscal representative. All bank charges should be borne by the taxpayer. There is no need to provide a bank account number when requesting the payment. The Spanish bank will make the payment to the tax authorities according to their standard process for these payments.
Bank transfer from foreign bank account
This method consists of making a direct bank transfer from a foreign bank account. This method was introduced to ease the VAT payment process for foreign businesses. Once you have completed your VAT return, you will have the option to pay the VAT due via a bank transfer. You will need to complete certain information fields, including information about the bank account from which the payment will be made. You will then see the bank account information where you need to make your payment.
As a reference on your bank transfer, you will need to indicate your Spanish VAT number. All payments should be made in euros, and any payment made in another currency will be rejected. Also, all bank transfer fees should be paid by the taxpayer. You will find more information in our dedicated article here.
The payment reference should contain only the identifier/reference indicated by the Spanish tax authorities (typically the Spanish VAT number/NIF), exactly as shown, without adding the company name, tax period, amount or any other text.
Spanish VAT refunds
When a VAT return is in a repayable position, a VAT refund can only be requested in the December or Q4 VAT return, except for businesses registered in the Monthly Refund Scheme.
Only those businesses registered in the Monthly Refund Scheme (so called REDEME) can request monthly VAT refunds. This scheme requires a number of additional compliance obligations.
At the bottom of the VAT return, there are sections that can be ticked to determine whether the VAT return is on a payable position ("a ingresar") or, in case the return is on a repayable position, VAT should be carried forward to the next period ("a compensar"), or repaid to the taxpayer ("solicitar devolucion"). In case of repayment, Spanish VAT refunds can be received in a foreign SEPA bank account. The IBAN number of this account must be included at the bottom of the VAT return form. The Spanish authorities must reimburse the VAT within six months following the deadline to submit the VAT return.
An audit or VAT verification process interrupts the six-month time. In case VAT is refunded after the six-month period (even when an audit has been carried by the authorities), interest will be paid in addition to the VAT amount refunded. Audits are not always carried when requesting a refund, however, these happen often for material amounts or significant changes in the VAT position.
- If the refund is approved later than six months after the deadline to request it, interest is due on the approved refund amount. This interest runs from the day after that six-month period ends until the date on which the Spanish tax authorities issue the refund decision.
- In a VAT refund audit, the authorities may request copies of the invoices included in the refund claim, related contracts or budgets, proof of payment (for example bank statements or payment receipts), and a formal letter explaining the company’s activities and VAT obligations in Spain for the period reviewed.
Spanish nil and corrective VAT returns
A nil VAT return needs to be submitted even if there are no transactions to be reported for that period. The option "Sin actividad" needs to be ticked. Regarding corrections, a corrective VAT return must be filed whenever the VAT position changes. The following scenarios can happen:
- Additional output VAT or less input VAT (VAT position increased): A new return replacing all data of the previous return needs to be submitted. The box "Declaración complementaria" should be ticked and the reference number of the initial return should be entered. Payment of the additional VAT should be made by the usual process. The authorities will charge penalties on the VAT paid late. See below section on Late payment penalties (link to section). The form applicable at the time of the period corrected should be used.
- All other corrections (including: less output VAT or no changes to the VAT position): A letter needs to be sent to the Spanish tax authorities informing about the change. The authorities should refund the amount within the six months following the submission of the letter, which can be sent electronically through the website of the authorities.
Corrective VAT returns are submitted electronically. The process is the same as the usual returns, but the box ‘Declaracion complementaria’ should be ticked.
VAT penalties in Spain
If paid within the deadline provided in the letter where the penalties are stated, the amounts are reduced by 25%. Additional penalties may be charged by the authorities, particularly where the corrections are triggered by an investigation or VAT audit. For penalties on ECSL, Intrastat and other returns, please see the relevant section.
Spanish distance Sales. VAT on e-commerce
You can find information about the general EU VAT regime on distance sales in our article about VAT on e-commerce. You may also watch our webinar explaining VAT rules for e-commerce in the European Union.
Spanish tax authorities contact
Unlike other EU countries, Spain does not have a non-established taxable persons unit. Foreign companies are registered at the tax office of their fiscal representative or the office where they have a permanent establishment. When replying to a request from the authorities, it is recommended to send the response to the office and address stated in the letter. However, according to Spanish administrative rules, these documents can be submitted in any tax administration. The following tax office is often used for being one of the largest of Spain and being located in Madrid:
Agencia Estatal de la Administración Tributaria Delegación de Hacienda Calle de Guzmán el Bueno, 139 28003 Madrid Telephone: +34 915 826 178
There is telephone number for general enquiries about VAT and other tax related issues. Information is only given in Spanish and for general purposes (we recommend not to rely on this information only): +34 901 335 533
