We were just in Spain and had the chance to sit down and speak with the German-speaking expert Marcos Vera-Stein (www.steuerberatermallorca.com) from Palma.
He was able to explain to us why the tax registration is so important for FBA-Sellers, whose goods are stored in Spain by Amazon and shipped from there. He also explained to us the challenges that you as Amazon-Sellers can expect to have in Spain. Here are answers to the most important questions:
As an FBA business, why do I have to register for VAT in Spain ?
If you have your merchandise stored in and shipped from Spain as part of the PAN-EU process, you are generating revenue that is taxable in Spain. In order to register this revenue correctly and the incurring taxes, the executive director needs to have a personal tax number in Spain. You will receive this NIE number in the registration process. Non-Spanish citizens can apply at local police stations, either in person or through a Spanish tax consultant. For the registration, however, you will need a certified copy of your personal identity card/passport, as well as a sworn translation of the commercial register extract with an apostille (provided there is an entry in the commercial register). The company will then receive a Spanish tax ID (CIF). Registration at a Spanish Consulate in Germany would be another alternative (only for the NIE). Doing it this way, however, is a lengthy process and a lot more complicated than registering directly in Spain. Issuance of the tax number can take between 3-4 weeks.
Please be aware that the tax authority in Spain has all the necessary information, or is able to obtain this information, in order to look for non-registered revenue. You will want to make sure to indicate you tax number, especially with transactions above 1,000 EUR.
I have little or no revenue in Spain, do I still have to register?
Yes, because the Spanish tax authority requires registration even for the smallest transaction. Please also note that with increasing revenue, it becomes more likely that they will check on you and may, if in doubt, require you to disclose your tax returns from the last four years. Then it would be necessary to show a range of invoice numbers without any gaps.
What happens to my income tax or corporation tax in spain?
Unlike the VAT, income tax that you generate from your Spanish warehouses, will have to be reported and paid in Germany. A separate calculation of profits from Spanish sales is not necessary. This only applies, however, when the company has no offices in Spain.
When do I need to report and pay the VAT return in Spain?
In principle, the notification period in Spain applies quarterly. However, as an entrepreneur, you can also apply to report and pay your VAT on a monthly basis. The deadline is then the 20th of the following month. This means, you have to report the months of January by February 20, and the first quarter by April 20. The month of July is a special exception, where you are allowed to report until August 31. The payment must also be paid by the 20th of the following month. However, should you intend to pay via direct debiting, you will have to report to the tax office by the 15th of the following month. In order to use direct debiting, you need a Spanish banking account.
Do I need a fiscal representative in Spain?
Yes, because all communication takes place digitally and in Spanish. Your Spanish representative will have to set up electronic access to the Spanish tax office and can then process all correspondences via a digital mailbox. The representative is also the first point of contact for the Spanish tax office.
How does a Special VAT Audit in Spain work?
The Spanish tax authority will send a questionnaire in Spanish to the representative, in order to clarify the circumstances of the case, with a deadline to respond. There is no such thing as an audit in person. The entire exchange of documents and data takes place digitally and in Spanish. This also means that your outgoing invoices of the past 4 years, which you have to issue yourself when participating in the Amazon PAN-EU Process, will have to be issued in Spanish.
Tax registration in Spain is absolutely necessary for Amazon PAN-EU sellers. Despite the necessary effort involved here, participation in the PAN-EU Process also offers its advantages. Your products will be declared prime in the respective countries, thus creating higher sales as well as decreased fulfillment fees.
We are here help! We process the taxes from your Amazon profits in Spain, automatically issue accurate invoices and take care of paying your taxes in Spain. The latter takes place within the scope of our cash pool, by which we collect the taxes centrally in Germany and ensure timely payment in Spain.
Through our partner Marcos Vera Stein from Palma de Mallorca, we are able to support you with a top-notch German-Speaking tax consultant in Spain. We have come to know Mr. Stein as an approachable as well as highly digitally savvy tax consultant, with a high degree of expertise in advising his clients. In addition, he has a great understanding of the everyday life for young as well as established e-commerce companies.