European businesses buy without national taxes

VAT number validation (NIF-IVA-VAT) for European customers

To be able to apply the Spanish VAT exemption, where legally applicable in intra-Community transactions, your company must be registered in the European Union’s VAT Information Exchange System (VIES). Otherwise, the corresponding tax rate will be applied and VAT will be charged.

The procedure for buying without VAT being applied, where legally applicable, is as follows:

Current legal framework in the European Union

Basic legal framework:

EU VAT legislation is based mainly on directives. A directive is binding on each Member State to which it is addressed, but leaves it to the national authorities to choose the form and methods of transposition into national law.

The main rule is the VAT Directive 2006/112/EC.

Other relevant regulations include:

The binding implementing measures to ensure uniform application of the VAT Directive can be found in the Council Implementing Regulation (EU) No 282/2011. These measures are directly applicable and do not require transposition into national law. In addition, in order to prevent fraud or simplify VAT collection procedures, Member States may be authorised to introduce derogations from the VAT Directive (see the list of derogations).

Application

Each Member State is responsible for transposing these provisions into its national legislation and for their correct application within its territory, although it is bound by the implementing measures adopted at EU level. The primary responsibility for providing information on the interpretation and application of these provisions lies with the Member States themselves.

In applying the EU VAT provisions, Member States are also guided by the discussions held in the VAT Committee.

Useful links

Country-specific information on VAT in the EU

Spain - Tax Agency

VAT in the European Union: rules and procedures

Cross-border e-commerce: VAT modernization

The European Union has promoted the modernization of VAT for cross-border e-commerce in order to reduce the administrative burden on businesses and simplify tax management. The main measures include:

  • The extension of one-stop shop schemes for certain intra-Community sales and e-commerce transactions.
  • Simplifying obligations for small e-commerce businesses.
  • Improving VAT control and management mechanisms in cross-border transactions.
  • The removal of certain VAT exemptions on low-value imports from third countries.

More information on the VAT One Stop Shop (OSS / IOSS)