Intra-community VAT number: Everything you need to know
In this post, we explain what the intra-community VAT number is, how to apply for it, and why it is key to operating in the EU.
The intra-community VAT number is an essential tax identification number for businesses and professionals engaging in commercial operations within the European Union. Obtaining it allows businesses to apply the intra-community VAT system, a special tax regime that avoids double taxation. In this article, we will explain what the intra-community VAT number is, how to apply for it, and what its legal and fiscal implications are in Spain.
What is the intra-community VAT number?
The intra-community VAT number is the tax identification number assigned to businesses and self-employed individuals engaged in the purchase and sale of goods or services with other EU member countries. It allows them to operate in any other EU country through a tax adjustment where VAT does not need to be added. It is the national VAT number with a prefix corresponding to the issuing country (in Spain, the prefix is “ES”).
Obligation to register in the VIES
By obtaining this number, businesses are added to the register of intra-community operators (VIES), a register of professionals and businesses engaged in commercial operations with businesses or professionals from another EU member state. This VIES (VAT Information Exchange System), also called ROI (Register of Intra-community Operators), allows operations with other entities to be taxed under a different VAT regime. It is Article 25 of Royal Decree 1065/2005, of July 27, that determines which individuals or entities must be included in this Register.
Checking the intra-community VAT number in VIES
The VAT Information Exchange System (VIES) allows the validity of the intra-community VAT number of any registered operator in the EU to be verified. This is crucial to ensure that commercial operations are carried out in compliance with intra-community VAT regulations.
Advantages of obtaining the intra-community VAT number
Having the intra-community VAT number offers several advantages:
- VAT exemption on intra-community transactions: Goods deliveries and services between intra-community operators registered in VIES are exempt from VAT, applying the reverse charge mechanism.
- Ease of commercial transactions: Inclusion in the ROI and VIES facilitates the verification of the validity of the VAT number of commercial partners, speeding up operations and building trust between parties.
- Regulatory compliance: Being registered in the ROI ensures compliance with tax obligations and avoids penalties for failing to correctly report intra-community transactions.
How to apply for the intra-community VAT number
To obtain the intra-community VAT number in Spain, the following procedure must be followed:
- Submit model 036: This is the tax census declaration form for registration, modification, or de-registration in the Census of Entrepreneurs, Professionals, and Withholders. When filling it out, check box 582 to request registration in the ROI.
- Provide additional documentation: The Tax Agency may require additional information to verify the existence and nature of the business activity, such as contracts, invoices, or documentation proving the intended intra-community transactions.
- Resolution of the application: After submission, the Tax Agency will evaluate the request and, if approved, will assign the intra-community VAT number, including the applicant in the VIES.
It is advisable to complete this procedure in advance of conducting intra-community transactions, as operating without being registered in the ROI can lead to penalties and the obligation to apply Spanish VAT on invoices.
Related tax obligations
Businesses and professionals with an intra-community VAT number must comply with certain tax obligations:
- Recapitulative declaration of intra-community transactions (Model 349): This form is submitted periodically to report intra-community transactions carried out.
- VAT declaration (Model 303): Depending on the nature of the transactions, it may be necessary to include intra-community transactions in the periodic VAT declaration.
It is essential to keep a detailed record of all intra-community transactions and ensure that invoices meet legal requirements, including mentioning both intra-community VAT numbers and indicating the reverse charge mechanism where applicable.
✅ Want to know more about how to obtain the intra-community VAT number?
Obtaining the intra-community VAT number is essential for any business or professional wishing to operate within the European single market. It facilitates commercial transactions, ensures compliance with tax regulations, and offers significant advantages in terms of VAT exemption. It is advisable to seek specialized advice to correctly manage the tax obligations arising from intra-community transactions.
📲 Contact our professionals and discover how we can help you meet your tax obligations as a non-resident company with a tax identification number in Spain.