Spain VAT / IVA Registration
Process for Spanish companies to obtain an IVA/VAT number
When we incorporate a Spanish company, we do the following:
- Obtain a provisional CIF identification number so the company can be incorporated and registered
- Convert this into a definitive CIF, when the company’s deeds have been filed with the Mercantile Register
When the company is fully incorporated, we register your company for taxes. This usually includes:
- Register formally for IVA:
- Register for Corporation Tax and Business Activity Tax (IAE)
- Register for Social Security; if a company is to have employees
- Get a digital signature, so that notifications and tax returns can be filed online
The CIF number becomes the VAT number when the company registers formally for VAT and can be converted into a Europe VAT number on the VIES register.
Spain VAT / IVA Registration Fees
- We can incorporate a Spanish company with Registered Office and VAT/IVA registration
- VAT Registration for a new Spanish company – £320
- VAT Registration for an existing Spanish company – £840
- Obtaining a VIES register number – £400
- companies house for a Certificate of Good Standing
- apostille service for the documents
- preparing double language Power of Attorney, we use a Notarial Protocol
- official translation as items such as notarial comments and stamps require official translation
- tax on obtaining an NIE number
- tax on obtaining a digital signature
As well as registering Spanish companies for IVA, we also register non-Spanish companies who require an IVA number to trade in Spain or in the EU.
- we will draft a power of attorney to allow your company to get a tax identification number number in Spain
- the power will also allow us to get an individual identification number for a representative of the company
- We will obtain and legalise a document from the company register in the UK
- All items which arrive in English will be translated into Spanish with a sworn translator
- We will then lodge the documents with the tax authority in Spain- so that you will have a Spanish VAT number immediately
- once the company has an identification number, we will get a digital signature for the company. This then allows us to lodge tax returns for you and allows us to communicate with the authorities in case of an queries, or repayments
- you will need to send details of quarterly trade with Spain from the date of registration
- we can organise any payments for VAT on the due date. How this is done depends on whether you have a bank account in Spain, or whether you wish to pay through a company credit card or through a transfer through ourselves
Process for foreign companies wanting to trade in Spain
The foreign company needs to get its identification number (CIF) first.
If the company wants to move from simple identification to trade; they will apply for a CIF on a different register. This can be done in one day, along with:
- Registering formally for IVA: notifying any premises or explanations
- Registering for Corporation Tax and Business Activity Tax (IAE)
- Registering for social security; if a company is to employ straight away
- Getting a digital signature, so that notifications and tax returns can be lodged on-line
Your company receives a CIF number at the time of incorporation, and your company is then active and can start trading, the CIF number is also your VAT number. When the company starts to trade, we can:
- Register your company for Economic Activity
- Register your company as an employer with the Social Security agency
A Spanish IVA number does not appear on the European register unless you apply for it.
This restriction is to prevent tax fraud, any company which has real business in Spain say with premises or staff or a tax agent can convert their IVA number into a European VIES number within 5 days. The company must be in good standing with the Spanish Registry in order to gain a European VAT number.
- We apply online as we are authorised to do so
- If require urgently we will go to the tax office with evidence to support your request.
- All overseas companies who wish to sign public documents in Spain need a CIF number.
- We can obtain one within 5 days, and the tax office will accept our translations of the original deeds of incorporation as legal translations.
In order to gain a VIES number we require proof of trading within Europe for example:
- details of contracts or business relations with companies in Europe outside Spain- both purchase and sale
- details of warehousing or contracts for holding your goods
IVA / VAT Registration
We apply for the company tax identification code (código de identificación fiscal/CIF) and register for VAT (IVA).
Your CIF acts as your VAT number and allows you to open a bank account in the company’s name and deposit the share capital.
Your company in Spain has to produce quarterly statements for
- Advanced income tax payments
- Withholding taxes on payment of rents if applicable
Regular Annual Accounting
Your company, even if has no activity, need to produce annual accounts and tax returns.
In January we will:
- produce a yearly summary of transactions with VAT, split into quarters
- produce a yearly summary of payroll and retentions for professional work; split into details for each person This is used by the tax authorities to produce personal tax returns
In April we will:
- produce and legalise the nominal ledger (libro mayor) with the Mercantile Registry.
- produce and legalise the journal (el diario) of the company
In July we will:
- produce the annual accounts for the Mercantile Registry – the accounts are around 40 pages and is supplemented by notes to these accounts.
- produce a similar statement for the payment of Corporation Tax.