VAT number: all the details
Discover what the VAT number is, how to obtain it, and why it is key to operating in the European Union without tax complications.
The VAT number (Value Added Tax) is a key tax identifier for businesses operating within the European Union. Obtaining it allows companies to apply the intra-community VAT regime, a tax system that prevents double taxation and facilitates cross-border trade. In this article, we explain what the VAT number is in Spain, how to apply for it, and its legal and tax implications.
What is the VAT number?
The VAT number in Spain is a tax identification code used for commercial transactions subject to VAT within the EU. This number is an extension of the NIF (Tax Identification Number) that includes a country-specific prefix (in Spain, the prefix is “ES”). This identifier is essential for managing VAT in commercial operations with other EU and non-EU countries, allowing, in many cases, exemption or the application of special tax rates on transactions.
Who needs it?
With some exceptions, the following individuals or entities must obtain a VAT number:
- Professionals and businesses established inside or outside the Spanish VAT area that carry out intra-community supplies of goods or acquisitions of goods subject to VAT, regardless of whether these acquisitions are used for commercial or professional activities abroad.
- Professionals and businesses established in the Spanish VAT area that receive services from professionals or companies not established in this territory and for which they are responsible for VAT under the reverse charge mechanism.
- Professionals and businesses established in the Spanish VAT area that provide services which, according to location rules, are considered rendered in an EU member state other than Spain, when the recipient of these services is the taxpayer.
- Legal entities that do not act as businesses or professionals but make intra-community acquisitions of goods subject to VAT.
And in which country should the VAT number be registered? As a general rule, the VAT number must be requested in the EU member state where the company operates.
Example in Spain
The VAT number is valid throughout Europe, but its composition varies by country. In Spain, the number starts with the letters “ES” to indicate the country. Simply add this prefix in front of the NIF to obtain the VAT number.
Applying for the VAT number in Spain
The VAT number is obtained when the applicant registers in the Register of Intra-Community Operators (ROI) by completing the registration or modification form Modelo 036. Additionally, the VAT number is only assigned if the company or professional is registered in the VIES (VAT Information Exchange System), a system that allows verification of the VAT number’s validity at the European level.
Once obtained, through the VIES system, it is possible to check and verify the VAT number of any company registered in the European Union. This verification is essential to prevent fraud and ensure that transactions comply with the tax regulations of each country. To apply the intra-community VAT rules, businesses must confirm that their clients or suppliers are also registered in VIES.
✅ Want to know more about how to obtain the VAT number in Spain?
Obtaining a VAT number is crucial for any company or professional wishing to apply the intra-community VAT regime. If you need expert assistance in applying for the VAT number and filing your VAT returns, contact our professionals. We are ready to advise you on meeting your tax obligations as a company in Spain.