Introduction
Value Added Tax (VAT) is one of the main indirect taxes in Spain, and its proper management is essential for any international company operating in the country. For multinationals, VAT compliance involves not only submitting returns correctly, but also adapting to constant regulatory changes and coordinating with the group’s tax teams.
This article complements our Definitive guide to establishing and operating a subsidiary in Spain and is part of the tax compliance cluster, alongside other resources such as What is tax compliance? and Form 349.
VAT Registration and Tax Representation
Foreign companies carrying out VAT-subject operations in Spain must register in the business census and obtain a NIF (tax ID). If they do not have a permanent establishment, it is mandatory to appoint a tax representative. Additionally, many companies require an EORI number to operate within intra-community trade.
Relevant Declarations and Filings
These are the main mandatory VAT-related declarations:
- Form 303: Monthly or quarterly VAT return.
- Form 390: Annual summary.
- Form 349: Intra-community operations.
- Form 347: Informative return for transactions with third parties.
It is crucial to meet deadlines to avoid penalties, especially when working with international teams that may have different tax calendars.
Key Updates and Changes in 2025
The year 2025 brings important adjustments to the VAT regulatory framework:
- Extension of the mandatory use of the SII (Immediate Supply of Information).
- Progressive implementation of mandatory electronic invoicing.
- New location criteria for digital operations.
- Review of reduced rates applicable to sensitive sectors.
Companies must review their accounting and invoicing systems to align with these obligations.
Common Mistakes and How to Avoid Them
Multinationals often make recurring mistakes that can be avoided with proper review:
- Incorrect application of the VAT pro-rata in mixed activities.
- Delays in filings, especially in groups with offices in different time zones.
- Unjustified deductions due to lack of supporting documentation.
A specialized tax advisor can help minimize risks and ensure efficient management.
One-Stop Shop and e-Commerce
The One-Stop Shop scheme (OSS / IOSS) allows companies to declare VAT for all EU sales from a single country. This system is especially useful for e-commerce or tech companies with end clients in multiple countries.
Proper implementation requires a prior review of the invoicing system, logistics chain, and VAT allocation by destination country.
Real Cases and Best Practices
One of our tech sector clients, with headquarters in the United States, faced coordination issues between their internal teams and the Spanish Tax Agency (AEAT). After delegating tax representation to Euroaccounts, we established a coordinated reporting system and tax calendar adapted to the group, eliminating incidents and improving information flow with the headquarters.
What Can Euroaccounts Do?
Euroaccounts offers a comprehensive VAT management service in Spain for foreign companies:
- Tax registration, obtaining NIF and EORI.
- Preparation and submission of forms 303, 349, 390, 347.
- Tax representation for companies without a permanent establishment.
- Ongoing advisory and regulatory updates.
- Integration with the group’s reporting system, adapted to IFRS or US GAAP if necessary.
Our multilingual team ensures smooth communication between the subsidiary in Spain and the parent company.
Next Steps
Proper VAT management in Spain requires local expertise, regulatory adaptation, and a coordinated strategy. The tax environment evolves rapidly, and international companies must anticipate changes to avoid costly mistakes. At Euroaccounts, we help our clients meet their tax obligations with security, efficiency, and confidence.
