In Spain, businesses that engage in taxable transactions are required to apply for Spanish VAT. This includes individuals, companies, and foreign entities that are involved in activities such as importing goods, offering services, or selling to Spanish consumers. If your business turnover exceeds a certain threshold (currently €35,000 annually for non-resident businesses), applying for VAT is mandatory.

Even if your turnover is below the threshold, you might still want to apply for VAT registration if you plan to make sales to VAT-registered businesses in Spain or other EU countries. Registering for VAT ensures that your business complies with local tax laws and helps you avoid paying penalties for non-compliance. Whether you're running a small online store or a large multinational company, understanding your VAT obligations is essential for doing business in Spain.

VAT reporting in Spain