Value-added tax (VAT) is an indirect tax not paid directly to the Spanish Tax Agency (AEAT); companies and self-employed individuals collect the tax when issuing invoices and later pay it to the AEAT. This tax collector is known as the VAT taxpayer.

To issue VAT invoices, you must have a certificate of VAT taxpayer status. In this article, we’ll explain this certificate and the steps needed to apply for it.

What’s in this article?

• What is the VAT taxpayer status certificate?
  
• Who can apply for the VAT taxpayer status certificate?
  
• What operations require a certificate of VAT taxpayer status?
  
• What obligations does a VAT taxpayer have?
  
• How do I apply for a certificate of VAT taxpayer status?
  

What is the VAT taxpayer status certificate?

The VAT taxpayer status certificate is a document issued by the AEAT to authorize a company or self-employed person to act as a VAT collection agent.

The term “taxpayer” (“sujeto pasivo” in Spanish) is defined in Article 84 of Law 37/1992, and the certificate confirms that companies or self-employed individuals are authorized to perform this function. This verification is useful in several scenarios:

• When transactions subject to VAT take place. Transactions of a commercial nature, such as the sale of products and services, cannot be carried out without the certificate, as it authorizes the company or professional to collect and report VAT to the AEAT.
  
• When a transaction where a reversed charge of VAT is applied takes place. In these transactions, the customer (who must hold the VAT taxpayer certificate) serves as both the taxpayer and the accountable person.
  
• When a check is required to confirm that the company or self-employed person is up to date with their tax obligations.
  
• When a self-employed person or company wants to sell their products on an ecommerce platform or request invoices to deduct VAT on their purchases. For example, Amazon might ask for a copy of the certificate to confirm the VAT number registration of its business customers.
  

Who can apply for the VAT taxpayer status certificate?

Any professional, whether self-employed (known in Spain as “autónomos”) or a company, can request a certificate of VAT taxpayer status to register as a VAT collector. However, private individuals cannot apply for this tax certificate.

What operations require a certificate of VAT taxpayer status?

The certificate is required for transactions involving the sale of goods or services subject to VAT. The most common transactions involve the standard VAT process: the company issues an invoice showing the taxable amount and the applicable VAT, the customer pays the total amount, and the company later remits the collected VAT to the AEAT.

Still, less common transactions also require the tax certificate, where the company does not act as the taxpayer, such as sales with a reverse charge, where the customer is responsible for paying and declaring the VAT. Here’s when a reverse charge needs to be applied:

• Sales of cell phones, tablets, video game consoles, or computers to a professional who resells them and to an end customer if the VAT-excluded amount of the invoice is over €10,000.
  
• The sale of certain salvage materials, such as iron foundry scrap or industrial waste containing metals or their alloys, and the procurement of services related to these materials, such as cutting or pressing the waste.
  
• Sales of gold with a purity of 325 thousandths or higher, provided the gold is delivered unprocessed or as semifinished articles.
  
• Sales of real estate falling into one of the following categories:
  
  • Those acquired through a bankruptcy process.
    
  • Those delivered by executing the guarantee on the real estate.
    
  • Pre-owned real estate, provided the buyer is a professional entitled to fully or partially deduct VAT. The sale is subject to TPO (chargeable property transfer) tax if the buyer is a private individual.
    
  • Rural and non-buildable land under the same conditions as secondhand real estate.
    
  • Constructions or renovations of real estate for companies or professionals, provided they result from contracts directly established between the contractor and the real estate developer.
    

What obligations does a VAT taxpayer have?

Once you obtain the certificate of VAT taxpayer status, you are subject to several obligations:

• Submit tax forms to the AEAT detailing your activities related to VAT:
  
  • To report an economic activity’s start, change, or termination subject to VAT, file Forms 036 and 037.
    
  • File Form 035 to report the start, change, or termination of an economic activity subject to VAT, provided it falls under the foreign, domestic, or import regime, as introduced by the 2021 amendment to the VAT law.
    
  • File Form 347 to report annually on transactions with third parties if their total value exceeds €3,005.06.
    
  • To report monthly or quarterly on intracommunity transactions, which are those conducted between two professionals or companies operating in different countries within the European Union, file Form 349.
    
  • To provide an annual summary report of your VAT transactions, file Form 390. VAT taxpayers are not required to file this form or Form 347 if they provide the data through the Immediate Supply of Information (SII).
    
• Submit VAT self-assessments and pay the total amount collected. To ensure you have amassed the correct amount of VAT on your transactions, it can be helpful to incorporate a tax automation solution, such as Stripe Tax, into your payment system. Tax is available in over 50 countries and is regularly updated with the latest tax regulatory changes (refer to the updated list of excluded territories).
  
• To apply for a Tax Identification Number (NIF), provide it whenever required.
  
• If you are not a resident in Spain (including territories where VAT does not apply, such as the Canary Islands, Ceuta, and Melilla) or in a country that does not have a fiscal assistance treaty with Spain, appoint a representative to fulfill your VAT obligations.
  
• Create and send invoices for all sales of goods or services and retain copies of both issued and received invoices.
  

How do I apply for a certificate of VAT taxpayer status?

You can apply in person at an AEAT office or electronically by following these steps:

1. Go to the specific AEAT webpage for this process.
   
2. Authenticate yourself using DNIe, Cl@ve, or an electronic certificate.
   
3. Complete the fields of Form 01, which is the certificate application. Please note that a certificate of VAT taxpayer status is required for each economic activity you conduct in your business, so you will need to fill out a form for each IAE category that you are registered with.
   

The turnaround time is 20 working days; once the VAT taxpayer certificate is issued, the requester has 10 days to report any incorrect information.

While the VAT taxpayer status certificate is received electronically through a Single Authorized Electronic Address (DEHú), the AEAT also sends a physical copy by mail.