VAT registration in Spain and related services are in high demand due to the boost in online trading. We have set up a devoted team to handle the Value Added Tax (VAT) reporting and payment to the Spanish Tax Authorities for Amazon sellers using FbA.
Our services include:
VAT registration in Spain
We do the registration by means of a Power of Attorney (“PoA”), which must be legalized and apostilled (the Hague Apostille). If the country of origin of the seller is not a member of The Hague Convention, then the document must be authenticated by the Spanish Consulate in that country. We provide the wording of the PoA which is written in two columns (Spanish / English), so that no additional translations are required. In order to be registered, a proof of existence of the seller must also be provided to the Tax Office.Once we receive the original PoA, the registration takes 2-3 days. We also apply for the EU VAT number, so that the Spanish VAT number is registered in the VIES.
While the domestic VAT number is given automatically by the Tax Authorities, the inclusion in the VIES can be delayed up to 60 days and is subject to a due diligence process by the Tax Office, to avoid fraudulent registrations. More often than not, the seller receives a letter of the Tax Office requesting additional information. In this respect, it is important to be sure of answering this letter on timely basis and to provide the Tax Office with clear explanations. Our experience is that many sellers have failed to get registered in the VIES because they did not even receive the letter (for instance, some of them gave as their Spanish registered address the one of the Amazon Fulfilment Center in Madrid). Others, simply did not understand what is required from them or assume that the tax official is aware of the FbA system. Since we have a lot of experience dealing with this matter and have a very fluent relationship with the tax officials, our clients rarely experience such pains.
VAT reporting in Spain
We prepare and submit the monthly or quarterly VAT returns and the annual summary
Our reporting is based in the Amazon VAT Transactions Report. To know more about this report, see our post about the Amazon VAT Transactions Report
To know more about the dates and process of declaration, please refer to our post VAT compliance in Spain
We also prepare and submit on monthly basis the intrastat and EU intracomunity transactions statement (form 349) reports for the Amazon sellers obliged to do so because they have exceeded the legal thresholds. The EU intracomunity statement is required for for sellers involved in cross border selling who, in the Cross Border Fulfilment Settings of the Amazon FbA configuration page, have allowed their inventory to be stored in Spain.
This is the time line of the reporting process (example for 2018 Q1):
Handling the payment of the VAT due to the Tax Authorities
Unfortunately, at the time of this writing, the payment of taxes in Spain can only be done though a Spanish bank account, even for sellers belonging to the SEPA. Therefore, Amazon sellers must either open a bank account or use the services of a third party to make the payment.
Please refer to our post how to pay taxes in Spain to learn more about this issue.
Unfortunately, opening a bank account for non residents is becoming a nightmare due to the rules to prevent money laundering. The process to open a bank account is time consuming and stressing and for more Amazon sellers it is simply not worth the time and effort. We make the payment of the VAT easy, since our clients just send the funds due to the Tax Office to our deposit bank account, from where we deliver the money to the Tax Office, together with the Tax return.
Non-EU Amazon sellers are obliged to appoint a fiscal representative who is resident in Spain. The Tax Authorities will then get in touch with them for any issue arising with the payment of their taxes. although EU sellers are not obliged to appoint a fiscal representative, our experience is that in absence of such representation the liaison with the Tax Office becomes difficult. Moreover, if the Amazon seller does not appoint a fiscal representative, they would be required to apply and install an e-certificate, because otherwise they will not be able to communicate with the Tax Office at all.
See our post about how to communicate with the Tax Office in Spain
We provide advice and guidance to our clients about their doubts regarding their VAT issues. For instance, the tax rate applicable to certain items that they sell in Spain, if they have to charge VAT in a certain transaction etc.