We were just on site in Spain and talked to the German-speaking expert Marcos Vera-Stein (www.steuerberatermallorca.com) spoken from Palma.
We've had people explain to us why tax registration is so important for FBA merchants who store with and ship from Amazon in Spain, and what challenges await you as an Amazon merchant in Spain. Here are the answers to the most important questions:
Why do I need to register for tax in Spain as an FBA merchant?
If you store and ship your goods in Spain under the PAN-EU procedure, this generates sales that are taxable in Spain. In order to declare these sales correctly and to declare the VAT due on them, a personal Spanish tax number must be obtained for the managing directors. This NIE number is obtained through registration. For non-Spaniards this is done at the local police and can be done either by you on site or by a Spanish tax consultant. For the registration by the tax advisor you need a notarized copy of your identity card / passport and a sworn translation of the extract from the commercial register with apostille (if there is an entry in the commercial register). The company will receive a Spanish tax number (CIF). Another alternative is the registration in a Spanish consulate in Germany (only for the NIE). However, this is a lengthy and much more complicated process than tax registration directly in Spain. It can take 3-4 weeks until the tax number is issued.
It should be noted that the tax office in Spain has or can obtain almost all the necessary information to find unreported sales. Especially for transactions over 1.000,00 € the tax number has to be declared.
I have little or no turnover in Spain, do I still have to register?
Yes, because the Spanish tax office requires registration even for the smallest sales and it should be noted that with increasing sales the audit becomes more likely and in case of doubt the tax documents for four years can be requested. Then it is necessary to be able to show a complete Spanish invoice number range.
What happens to my income tax or corporate tax in Spain?
Unlike sales tax, the income taxes you generate from Spanish warehouses are reported and paid in Germany. A separate determination of the profit from Spanish sales is not necessary, but this only applies if there is no company headquarters in Spain.
When must the advance VAT return be declared and paid in Spain?
In Spain, the reporting period is generally the quarter. However, as an entrepreneur you can also apply to report and pay the VAT on a monthly basis. The deadline is the 20th of the following month, so for January the report is due on February 20th and for the first quarter on April 20th. There is an exception for the month of July, where reporting can be done until August 31. The payment deadline is also the 20th of the following month. If, on the other hand, you want to pay by direct debit, the report must be submitted to the tax office by the 15th of the following month. However, in order to pay the VAT by direct debit, a Spanish bank account is required.
Do I have to have a tax representative (fiscal representative) in Spain?
Yes, because all communication is digital and in Spanish. The national representative must set up electronic access to the Spanish tax office and can use this to handle all correspondence. This takes place in Spain via a digital mailbox. In addition, the representative is also the first point of contact for the Spanish tax office.
What is the procedure for a special VAT audit in Spain?
The Spanish tax office sends a Spanish language questionnaire to the representative for clarification and sets a deadline for response. There is no on-site personal review. All document and data exchange is done electronically and in Spanish. This means that your outgoing invoices, which you have to create yourself if you participate in Amazon's PAN-EU procedure, must be issued in Spanish for the last 4 years.
Conclusion
Tax registration for Amazon Pan-EU merchants is mandatory in Spain. In addition to the effort involved, participation in the PAN-EU process also has its advantages. Your products will be declared as prime products in the respective countries and thus ensure higher sales. In addition, the fees for the fullfilment become more favorable.
AccountOne
We help you with the tax processing of your Amazon sales in Spain, automatically create correct invoices and take care of the payment of your taxes in Spain. The latter is done within the framework of our cash pool, where we collect the taxes centrally in Germany and ensure the timely payment in Spain.
Vera stone
With our partner Marcos Vera Stein from Palma de Mallorca we provide you with a German-speaking tax consultant in Spain. We have come to know Mr. Stein as an open-minded and very digital-savvy tax advisor with a strong preference for advising his clients. In addition, he has a very good understanding of the everyday life of young and established companies from e-commerce.
