SPANISH VAT: SALES FROM GERMANY TO SPANISH END CUSTOMERS

The special VAT system for distance selling provides that sales made by a German company without permanent establishment in Spain, delivered directly from Germany to the end customer, shall be subject to Spanish VAT when they reach a yearly turnover of at least 35,000 Euros.

When this circumstance is given, the German company must apply for a Spanish tax code (“NIF“) and submit quarterly VAT returns in Spain (for the sums invoiced to its clients). Should this not be complied with, the Spanish Tax Authorities may not only claim the outstanding payment, but also the corresponding default interests and a fine of at least 50% (with a maximum of 300%).

Our firm has adequate experience in this area, especially what the acquisition of Spanish tax numbers (NIF) refers to, which is quite an elaborate matter, so that we would be pleased to assist you where necessary.

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