All companies and self-employed workers need to apply the VAT tax in every invoice. However, the Spanish regulations do not apply when transactions are between freelancers or companies from another country in the European Union. How are these intra-community operations? A Gestor Administrativo can help you.
All operations carried out between Spain and another EU country do not apply for the Spanish VAT tax. Therefore, a Spanish freelancer who sends an invoice to a French company will not have to include this tax. They will not have to deduct the Individual Income Tax either.
In order to do intra-community operations, freelancers and companies must have a VAT number. This VAT Number is a tax identification number that allows that all intra-community operations are tax-exempt. The code must appear in all invoices sent to foreign companies. The recipient’s VAT number must also be stated in the invoice.
How to apply for the VAT number?
If you are going to send an invoice to a foreign company, you must have this tax identification number. The process is very simple. You will need to register in the Spanish Intra-community Operators (known as ROI or VIES) applying with Form 036. This form can be submitted when registering in the Tax Agency for the first time or when you are ready to invoice your first foreign client.
Once you are registered in ROI, the Tax Agency will send you the confirmation together with your VAT number. This number will include your Spanish ID number preceded by the code of your country. In the case of Spain, the VAT number would be as follows: ES-11111111X.
How can I declare intra-community activities?
As they are tax-exempt, these operations are not included in the usual quarterly VAT returns. In order to declare these invoices, you will need to fill in form 349, which is normally issued every three months. This must include the same information as the one in form 303, the quarterly VAT return form.
If you want to know more, reach out to a Gestor Administrativo. We will help you with your paperwork!