IVA (VAT) Guide for Autónomos in Spain
Everything you need to know about Spanish Value Added Tax as a self-employed individual
When you register as self-employed (autónomo) in Spain, you generally register for VAT (IVA) as part of the same process. This guide explains everything you need to know about IVA for autónomos, covering who needs to register, how to do it, when to charge IVA or not, filing obligations, and common pitfalls to avoid.
1. Who Must Register for IVA
Almost all businesses operating in Spain must register for IVA. Unlike some countries, Spain does not have a VAT registration threshold, so even small-scale or low-turnover businesses are obliged to register and charge IVA on taxable sales from the first euro. In practice, this means that when you become an autónomo and your activity is subject to IVA, you must inform the tax office and be ready to collect and pay VAT.
Exemptions from IVA
Certain activities are exempt from IVA by law, meaning you do not charge IVA on those services/goods (and generally cannot deduct input VAT either). Spain's VAT Law (Law 37/1992) Article 20 lists exempt activities. Common examples include:
If your only business activities fall under these exemptions, you can indicate on your registration that your activity is exempt from IVA (on Modelo 036, box 501). This frees you from charging IVA or filing quarterly IVA returns.
Special VAT Regimes
Depending on your situation, you might fall under or opt into a special IVA regime. Here are the most important ones to know about:
REDEME
Monthly VAT Refund Regime: If you expect to consistently have more input VAT (IVA on purchases) than output VAT (IVA on sales), you can apply to join REDEME. This lets you file VAT returns monthly and get refunds monthly instead of waiting until year-end.
REDEME is voluntary and useful for businesses with large upfront costs or exporters. It requires a special registration on Modelo 036 (tick the "Registro de Devolución Mensual" option) before the start of the year or upon starting the business.
ROI
Registro de Operadores Intracomunitarios: If you plan to buy or sell goods or services with businesses in other EU countries, you must register for ROI to obtain an EU VAT number (NIF-IVA).
Being on the ROI allows you to trade with EU companies without charging IVA – instead, you can invoice EU business clients with 0% VAT and they handle VAT in their country. Any autónomo who will sell to or purchase from another EU business should register in ROI.
Important Note
2. How to Register for IVA (Modelo 036/037 Step-by-Step)
To register as an autónomo for both income tax and IVA, you will submit a "declaración censal" – either Modelo 036 (full form) or Modelo 037 (simplified form) – to the Agencia Tributaria (Tax Agency). This is the form where you register your business activity and tax obligations, including IVA.
1Obtain the Forms or Access Online
Modelo 036 and 037 are official tax registration forms:
- Modelo 037 is a shorter version (6 pages) that can be used by individuals who are Spanish residents, with a Spanish address, not operating under special regimes like ROI or REDEME.
- Modelo 036 is the full 8-10 page form that must be used if you need ROI or REDEME, or have more complex situations.
- The forms can be filled out online on the Agencia Tributaria website (using Cl@ve or digital certificate) or downloaded as PDFs to fill and submit at your tax office.
2Fill in Your Personal and Business Identification Details
On the form, provide:
- Your NIE/NIF (Foreign ID Number), full name, and current address in Spain
- Check the box indicating "Alta" (registration) as a new business (as opposed to modification or cessation)
- Indicate the effective start date of your activity (often the date you plan to begin trading)
- Supply contact details like phone and email if requested (optional but for notifications)
3Declare Your Economic Activity (IAE) and Tax Regimes
On Modelo 036/037, there is a section to declare your business activity code (Epígrafe IAE) and the taxes associated with it:
- Select the IAE code that best fits your profession or business (e.g., freelance writer, IT consultant, shop owner, etc.)
- IRPF (income tax) obligations: as an autónomo, typically quarterly payments (Modelo 130) or withholding if applicable
- IVA (VAT) obligations: This is crucial – you must specify your IVA status. On Modelo 036, Section 5 (IVA) asks a series of questions:
- First, it asks if you operate in the Spanish VAT territory (Peninsula and Balearic Islands) – you would mark "Yes" if your business is based in mainland Spain or Balears
- Next, it asks if your activity is exempt from IVA under VAT law Article 20 (or certain intra-EU exemptions under Art. 26). If your activity is one of the exempt ones (discussed above), you would mark that box (meaning you won't charge IVA)
- Most freelancers with taxable activities will mark "No – not exempt," indicating you will charge VAT. This automatically obliges you to file quarterly IVA returns (Modelo 303)
- Choose your IVA regime: In the IVA section of the form, you'll see multiple subsections for different regimes. The default is the General Regime (standard VAT accounting). Most autónomos will tick the box for "Régimen General IVA – Alta" and provide their IAE code and start date.
4(If needed) Opt into ROI or REDEME
Still within the Modelo 036 IVA section, there's a part for "Register entries" like ROI and REDEME:
- To register in ROI (Intra-Community Operators), tick the box for ROI inclusion (casilla 582) and provide the date
- To register in REDEME (Monthly Refund Register), tick its box (casilla 579)
- If you're opting for these, remember you must use Modelo 036 (Modelo 037 doesn't include ROI/REDEME options)
- Many new autónomos skip REDEME unless they expect large refunds, but do tick ROI at startup if you anticipate any EU business – it's easier to get it done from the beginning than to add later (ROI approval can take a few weeks up to 3 months)
5Submit the Registration to Hacienda
Once the form is completed with all required data, you need to submit it to the tax authorities. You have two options:
- Online submission: If you already have a digital certificate or Cl@ve, you can file Modelo 036/037 through the Agencia Tributaria's online portal. Online filing is convenient and gives immediate confirmation.
- In-person submission: If you cannot file online, you can print the completed form and submit it at your local Agencia Tributaria office. You may need to make an appointment. Bring your passport/NIE, and any proof of address if needed.
Timing: You should file the modelo 036/037 before you start doing business. Ideally, do it immediately before you begin issuing invoices or incurring business expenses.
Important
3. When to Charge IVA and When Exemptions Apply
Once you're registered for IVA, you need to know when to add IVA to your invoices and at what rate, and conversely when not to charge IVA. Here's an overview:
Standard Rate: 21%
Spain's standard VAT rate is 21%, which applies to the majority of goods and services. If your activity or product isn't specifically listed for a reduced rate or exemption, you will charge 21%.
Examples: consulting services, professional services, most consumer goods, electronics, clothing, appliances, etc.
Reduced Rate: 10%
A variety of items are taxed at a 10% IVA rate (the "reduced" rate) because they are considered semi-essential or for social benefit.
Examples: most food and drink products, water supply, restaurants, bars, catering and hotels, certain health products, cultural activities, new housing construction.
Super-Reduced Rate: 4%
This ultra-reduced IVA rate is for truly essential goods. It's a short list of specific items.
Examples: basic staple foods, books, newspapers, magazines, prescription medicines, certain equipment for disabled persons, social housing.
Scenarios Where You Do Not Charge IVA
When Not to Charge IVA
If your work is exempt by law (education, medical, finance, etc.), you simply issue invoices without IVA. You may note 'Exento de IVA, Artículo 20 Ley IVA' on the invoice to indicate the legal basis of exemption.
If you sell and ship goods to a customer in a non-EU country (export), those sales are zero-rated (0% IVA). You don't charge Spanish VAT, but you should keep proof of export (customs documents, courier tracking, etc.).
Many services provided to a business client established outside Spain (whether in the EU or outside) are not subject to Spanish IVA. For B2B services to EU clients with ROI registration, you don't charge Spanish IVA but must include your VAT number and the client's VAT on the invoice.
If you sell physical goods to a business in another EU country, this is an intra-Community supply. With ROI, you can zero-rate the sale (0% IVA) because the buyer will pay VAT in their country. Both parties need VAT numbers.
These parts of Spain are outside the IVA system. If you invoice a client in the Canary Islands, you do not charge Spanish IVA (the Canary client will pay IGIC locally). Treat it similar to an export.
Tip
4. Quarterly and Annual IVA Filings
Being registered for IVA means you have ongoing obligations to declare and pay IVA to the tax authorities. Here's what you need to do:
Modelo 303 – Quarterly IVA Return
This is the main form for IVA self-assessment. As an autónomo under the general regime, you must file Modelo 303 every quarter. In the quarterly 303, you report the IVA you charged on sales (output VAT) and the IVA you paid on business purchases (input VAT) for that quarter, and the difference will be what you either pay to Hacienda or reclaim.
- Q1 (Jan–Mar): Due by April 20
- Q2 (Apr–Jun): Due by July 20
- Q3 (Jul–Sep): Due by October 20
- Q4 (Oct–Dec): Due by January 30 of the next year
Even if a quarter has no activity (no sales or expenses), you still must file a "sin actividad" (zero) return – it's informative to show Hacienda you had no transactions. Failing to file a nil return can trigger penalties just like not filing a positive one.
On the 303, you will enter totals for IVA charged (outputs) at each rate and IVA paid (inputs). The form will calculate the "resultado" (result). If positive, that's what you owe for that quarter. If negative, that's your credit. By default, a negative amount is carried forward to offset next quarter's IVA.
If your 303 has a positive result (you owe money), you have several payment options:
- Direct debit (if you opted for it and filed by the cut-off date, usually the 15th of the month)
- "NRC" payment system: make a payment through your bank and enter the NRC code in your online 303 form
- Pay at certain collaborating banks with a 303 form receipt
You can learn more about the quarterly filings in our dedicated Modelo 303 Guide.
Modelo 390 – Annual Summary
In addition to quarterly returns, Spain traditionally required an annual VAT summary (Modelo 390), due at the end of January each year. This form recaps all the IVA information of the year (breakdown by quarters, sectors, rates, etc.). The filing period for Modelo 390 is January 1–30 for the previous year (essentially alongside the Q4 return).
These days, if you file all quarterly 303s, the 390 is mostly informative – it should match the sum of your 303s. As of recently, the tax agency has waived the 390 requirement for many small filers whose quarterly forms already contain all necessary info (there's an option on the last 303 of the year to indicate that). However, if they haven't explicitly exempted you, plan to file 390.
You can learn more about this annual summary in our dedicated Modelo 390 Guide.
Keeping Records
You are required to maintain proper VAT records: a Sales Ledger (Libro de Facturas Emitidas) and a Purchases Ledger (Libro de Facturas Recibidas). This can be as simple as an Excel or notebook where you list each invoice issued (with date, number, customer, base amount, IVA, etc.) and each purchase invoice received with its details.
These records support what you declare in the 303/390. In case of an audit or discrepancy, you'll need to produce your books and invoices. It's wise to update these ledgers each quarter so you can easily fill out the 303. There is also a requirement to keep copies of invoices for at least 4 years (standard statute of limitations for tax in Spain).
Deadlines Summary
- Quarterly IVA returns (Modelo 303): Due by April 20, July 20, October 20, and January 30 of the following year for Q4
- Annual summary (Modelo 390): Due by January 30 (if required)
- EU operations (Modelo 349): Due by 20th of the month after each period (if you have EU operations)
Mark these on your calendar because Hacienda does not send reminders. Missing a deadline, even by a day, can result in penalties.
5. Common Pitfalls and How to Avoid Fines
Spanish VAT compliance can be complex, and many new autónomos make mistakes that lead to fines or problems. Here are common pitfalls and tips to avoid them:
Failing to Register for IVA When You Should
Some expats mistakenly think there's a revenue threshold below which they don't need to deal with VAT. In Spain, that's not the case – if your activity is subject to IVA, you must register and charge it from the start. Operating "under the radar" without IVA can lead to serious penalties if discovered.
How to avoid:
Unless you're certain your activity is exempt or qualifies for a special small business exception, register for IVA as part of your autónomo setup. Charging IVA makes your services slightly pricier, but it keeps you legal.
Not Charging IVA on Invoices When Required
If you forget to add IVA to an invoice or you wrongly assumed an exemption, you might end up having to pay that 21% out of your own pocket later (since Hacienda will want its cut on that revenue).
How to avoid:
Always double-check if a sale should have IVA. When in doubt, charge IVA – your client in Spain will expect it anyway. If it turns out later IVA was not needed, you can issue a corrective invoice. It's harder to go back and charge a client after the fact.
Missing ROI Registration for EU Transactions
A very common oversight for expat freelancers – you start providing services to an EU client and don't realize you needed an EU VAT number (ROI) to zero-rate the invoice. If you invoice an EU business without being in ROI, technically you should charge Spanish IVA.
How to avoid:
If there is any chance you will have non-Spanish EU clients or suppliers, check the ROI box on your Modelo 036 at registration or apply via 036 before your first EU deal. It's free and relatively quick. Also, remember to file Modelo 349 for any quarter you have EU operations.
Late Filing or Payment of IVA Returns
This is perhaps the most frequent pitfall. Missing the quarterly deadline triggers automatic penalties or surcharges. If you file a quarterly return late but you owe tax, you'll pay a surcharge of 5%, 10%, 15%, or 20% of the tax due depending on how late, plus interest after 12 months.
How to avoid:
Mark the IVA deadlines on your calendar, set reminders, or better yet engage a gestor who will ensure timely filing. If cash flow is an issue, you still should file on time even if you can't pay in full – you can request an installment plan or just pay as much as possible; filing late is worse.
Not Filing Because "I Had No Invoices"
Some believe if they had no sales or purchases in a quarter, they can skip the return. This is incorrect – you must file a nil return. Hacienda can fine you for a missing return even if nothing was due.
How to avoid:
Always submit the form, even all zeros. It's quick to do and avoids a €200 penalty for "informative declaration not filed". Similarly, don't forget the annual 390 if it's required – missing it can also trigger a fine (often €200 as well).
Improper IVA Deductions
Another pitfall is deducting IVA on expenses that are not truly business-related. For example, trying to deduct VAT on 100% of your car expenses when the car is also for personal use, or on meals that were not strictly business-related.
How to avoid:
Only deduct IVA on purchases that are wholly and exclusively for your business. For mixed-use items (like a phone or car), deduct only the business-use percentage and be prepared to justify it. Keep all receipts and ensure they have your name/NIF on them.
Tips to Stay Compliant and Organized
Mark all quarterly due dates (VAT, income tax, etc.) and set phone reminders a week before. Procrastination is dangerous with taxes.
Especially if you're not fluent in Spanish or comfortable with tax forms, a gestor's fee can be well worth it. They will prepare and file your 303, 390, 349, etc., correctly and on time.
There are apps for autónomos that generate invoices, track expenses, and even pre-fill tax forms. Some popular ones in Spain include Debitoor, Quipu, Anfix, Xero (with Spanish localization), and others.
Have a dedicated bank account for your business income/expenses if possible. This makes it easier to track IVA movements and also looks cleaner if ever reviewed.
Tax rules do change. Follow English-language expat forums, official Agencia Tributaria announcements, or consult your gestor each year to be aware of any new obligations or options.
Remember
Staying on top of your IVA obligations is manageable with organization. The consequences of non-compliance range from monetary fines to more severe tax fraud charges in extreme cases, so it's best to take it seriously.
However, thousands of autónomos successfully handle their VAT each year – often with professional help – and once you get into the routine, it becomes a normal part of your business quarter.
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