If you sell products or services to businesses in other European Union countries, or you buy from them, you may need to register your business in the ROI, the Intra-Community Operators Registry.
This registration allows your Spanish business to appear in the European VAT database, commonly checked through VIES, and to benefit from the VAT treatment that applies to transactions between registered EU traders.
If you buy from another EU country
As a consumer, when you buy goods or services in another EU country, the invoice usually includes the VAT rate of that country. That VAT is paid to the country of origin.
If your business buys in the same way, VAT paid to another EU country cannot normally be offset directly against the Spanish IVA you collect from your own sales. In practice, this can increase your cost and reduce your profit.
To avoid this, EU VAT rules allow properly registered businesses to issue invoices without local VAT to other VAT-registered businesses in the EU, when the conditions for reverse charge or intra-community treatment are met.
With ROI/VIES registration, you can ask suppliers in other EU countries to issue invoices without VAT where the rules allow it.
If you sell to another EU country
The key factor is whether your customer is a business or a final consumer.
When you sell to a non-VAT-registered business or individual, you usually have to apply Spanish IVA, unless a specific exception applies.
There is a particular rule for services provided electronically through automated processes with little or no human intervention.
If a foreign business asks you to issue an intra-community invoice, meaning an invoice without IVA, you are expected to check your client first and verify that it is registered as an EU trader.
If the client is not properly registered, you should issue the invoice with IVA.
Issuing an invoice without IVA to a non-registered business can have consequences. The Tax Office could claim from you the IVA that you should have charged and collected.
How to make an intra-community invoice
An intra-community invoice should contain the same basic information as a regular invoice, with two important differences.
- Your VAT number should appear complete, including the ES country prefix before your Spanish tax number.
- When the invoice is issued to a properly ROI/VIES-registered EU business and the conditions are met, the invoice does not include IVA.
Registration and supporting documents
Registering as an EU trader is not always automatic. The Tax Agency may request evidence that your business genuinely needs international VAT registration.
This may include proof of business activity, details of EU suppliers or clients, proforma invoices, contracts or business address evidence.
Included in the cross-border plan
Registration as a European trader is included in our cross-border plan for autonomos.
This is especially useful for freelancers, consultants, online sellers and digital businesses that regularly invoice or buy from other EU businesses.