The expansion of cross-border e-commerce and the globalisation of supply chains have significantly increased the number of non-resident companies with VAT obligations in Spain. A US-based company selling software to Spanish businesses, a Swiss logistics operator storing goods in a Spanish warehouse, an Australian e-commerce platform selling consumer goods to Spanish customers: all of these can have Spanish VAT registration, filing, and payment obligations that, if not properly managed, generate penalties, surcharges, and operational disruption.
Legal Framework: When Spanish VAT Obligations Arise
Spanish VAT (governed by Law 37/1992 and implementing Regulation Royal Decree 1624/1992) applies to supplies of goods and services carried out in mainland Spain and the Balearic Islands. The Canary Islands, Ceuta, and Melilla operate under separate indirect tax regimes (IGIC and IPSI respectively) and do not form part of the Spanish VAT territory.
A non-resident company has Spanish VAT obligations when it:
- Makes deliveries of goods from a warehouse located in Spain (including storage at fulfilment platforms such as Amazon FBA with inventory held in Spanish territory).
- Provides services whose place of supply, under the localisation rules of Article 69 of the VAT Law, falls in Spain (for example, real estate-related services on properties in Spain, or services related to events held in Spanish territory).
- Makes distance sales of goods to final consumers in Spain exceeding the €10,000 annual threshold (the unified EU threshold in force since July 2021 for all Member States).
- Imports goods cleared through customs in Spain for delivery to Spanish customers.
The OSS System and Its Impact on Fiscal Representation Requirements
The e-commerce VAT reform effective from July 2021 introduced the One Stop Shop (OSS) regime and extended its scope to goods sales from third countries (IOSS, Import One Stop Shop). The OSS allows EU-established businesses to declare and pay VAT on all their B2C sales to consumers in other Member States through a single portal (typically in their home Member State), avoiding the need to register in every country where they sell.
However, the OSS has important limitations: it does not cover B2B sales, does not apply to supplies of goods involving physical storage in the destination country, and does not substitute for direct registration where the company has goods stored in Spain. In these cases, the non-resident company must register in the AEAT’s taxpayer register and, if established outside the EU, appoint a fiscal representative.
The Fiscal Representative: Responsibilities and Risks
The fiscal representative for VAT purposes is the individual or legal entity resident in Spain that acts as the intermediary between the non-resident company and the Tax Agency (AEAT). Their functions include: applying for the Spanish NIF (tax identification number) for the non-resident company, filing periodic VAT self-assessments (Form 303 and Form 349 for intra-Community transactions), managing the recovery of input VAT, and responding to AEAT enquiries.
The most significant — and often overlooked — aspect of the regime is the representative’s joint and several liability: under Article 84.Two of the VAT Law, the representative is jointly and severally liable for the represented company’s tax debts. This means that if the non-resident company fails to pay the declared VAT, the AEAT can pursue the representative to collect the debt. For this reason, reputable fiscal representatives routinely require bank guarantees or deposits as a condition of accepting the appointment.
Spanish VAT Registration Process: Timelines and Documentation
The process for a non-resident company to register for Spanish VAT comprises several steps. First, the company must obtain a Spanish NIF (tax identification number) by filing Form 036 with the AEAT, accompanied by documentary evidence of the company’s incorporation in its home country (duly apostilled or legalised and translated into Spanish).
If the company has no permanent establishment in Spain and is domiciled outside the EU, it must simultaneously appoint its fiscal representative by notarial deed or private document with notarially certified signature. The registration deadline is before the start of taxable operations: beginning to operate without registration incurs tax infringement penalties and, in certain reverse-charge scenarios, liability for the acquirer.
Recovery of Spanish Input VAT for Non-Established Companies
Companies not established in Spain that have borne Spanish input VAT on their purchases or imports can apply for a refund. EU companies use the electronic refund system under Article 119bis of the VAT Law (transposing Directive 2008/9/EC), submitting the application through their home Member State’s portal before 30 September of the following year. Third-country companies (where reciprocity is established) use the procedure under Article 119 of the VAT Law, with a deadline of 31 December.
Efficient management of these refunds is a significant cash flow lever for companies with operations in Spain: the statutory resolution period is six months, after which the AEAT owes late payment interest in favour of the applicant.
Practical Considerations for E-Commerce and Marketplace Sellers
Non-resident e-commerce businesses selling into Spain face particular complexity. Marketplace operators (Amazon, eBay, Zalando) are now VAT-deemed suppliers for certain B2C transactions under the 2021 reform, meaning the marketplace collects and remits Spanish VAT on the seller’s behalf in some cases. However, this does not relieve the underlying seller of registration obligations where they hold inventory in Spain, and the intersection between marketplace VAT collection and the seller’s own registration status must be carefully analysed.
At BMC, we manage VAT fiscal representation and compliance for non-resident companies operating in Spain, from initial registration through ongoing filing and VAT recovery. Discover our VAT representation services for non-resident companies.
