WHAT IS A TAX REPRESENTATIVE?
A tax representative is a natural or legal person enabling companies that are not established in Spain to trade in Spain. You can designate any natural or legal person residing in Spain as your tax representative.
You will need to designate your tax representative before you start any trading operations that are subject to tax in Spain. Don’t forget that you will still be liable to pay tax in your country of origin on any profit you make.
As your tax representatives, we become your partner in Spain and represent you in your dealings with the Spanish tax authorities. Our aim to is to promote mutual understanding between customers, suppliers and the tax authorities, bringing your logistics, customs and tax operations together under one umbrella, and freeing you up from the red tape of Spanish administrative formalities.
TYPES OF TAX REPRESENTATIVE
Representation can be voluntary or compulsory, depending on whether your company is based in the EU or not::
- Voluntary representation, i.e. the tax representative simply acts as a manager for EU-based companies wishing to trade in Spain.
- Compulsory representation, i.e. the natural or legal person acts as a tax representative on behalf of non EU-based companies wishing to trade in the territory in which Spanish VAT applies.
SERVICES OF TAX REPRESENTATIVE
- Obtain EORI registration.
- Obtain Spanish tax number or VAT number.
- Submit VAT returns (monthly or quarterly), and process VAT refunds, compensation and payments.
- Submit Intrastat declarations.
- Receive correspondence from the Spanish tax and customs agencies on your behalf, dealing with any issues arising with the Spanish authorities to defend your interests.
If you wish to stock goods and spread the payment of import duties over time to improve your margins, ask us about our VAT-exempt areas, in our bonded and tax warehouses.
If you would like to import raw materials and then process or assemble them in Spain and (when finished), sell them outside the European Union, ask us about the special customs schemes:
Documents required by non-Spanish companies:
- The company’s Commercial Register certificate or its public deeds of incorporation.*
- Copy of the legal representative’s passport.
- Power of attorney and agency contract to be signed by the non-Spanish company’s legal representative.
- Cooperation agreement and tax representation.*
- Autorización para dar de alta a un nº Eori y vincularlo a su NIF N.
- Power of attorney to receive electronic notices on your behalf.*
* These documents must be signed before a notary, and must include the Hague Convention Apostille or be authenticated by the Consulate, with a sworn translation in Spanish.
Linked to the tax representative service and as an additional service we manage the obtaining of:
- The General Sanitary Registry of Food and Food Companies (RGSEAA): for this you can obtain advice on:
- Health Legislation in force in Spain applicable to the Marketing of your Products.
- Labeling and composition.
- In the preparation of the Food Safety Protocol: the health authorities require the importer to establish a traceability protocol between all the agents involved in the operation from the supplier at origin, importer, distributor and warehouse.
- The import licences for medical devices and products issued by AEMPS.
WHO ARE OUR SERVICES AIMED AT?
Non-Spanish companies aiming to broaden their business horizons and looking to set up their goods distribution centre in Spain under the same conditions as Spanish companies.
NON-SPANISH COMPANIES INTERESTED IN:
Importing to Spain
from other countries
Exporting from Spain
to EU countries
Exporting from Spain
to non-EU countries
WHEN IS A TAX REPRESENTATIVE COMPULSORY?
That comply with one of the following circumstances:
- Businesses using the special scheme for telecommunication services and are therefore considered as taxable persons liable for VAT. They shall only be liable to pay tax in Spain when they provide telecommunication, broadcasting, TV or electronic services. The provision of these services pays tax in the country the customer is established in, irrespective of whether the customer is a business, a professional or the end consumer.
- Businesses that pay VAT in Spain and want to request a VAT refund.
WHEN IS A VOLUNTARY TAX REPRESENTATIVE REQUIRED?
That carry out any of the following operations:
- Distance selling: Sales originating in other member states made to unidentified recipients in the VAT territory and sent to the Spanish mainland or the Balearic Islands, taking into account the legally established thresholds.
- Businesses that wish to trade via a permanent establishment (PE) for VAT registration purposes in Spain. The concept of the PE for VAT purposes is only regulated in Spain and the Netherlands.
These are just a few examples of our tax representative services
Non-Spanish companies wishing to set up their distribution centres in Spain aim to find a logistics and tax solution that enables them to trade with their Spanish customers under the same conditions as a Spanish business. Spain is one of the few countries in Europe which, in line with national VAT regulations, makes it easy to trade with all the advantages of a Spanish company, thus improving margins.
- ITALIAN COMPANY USES SPAIN AS ITS DISTRIBUTION BASE FOR GOODS IMPORTED FROM PANAMA TO BE SOLD IN SPAIN (INCLUDING CANARY ISLANDS, CEUTA, MELILLA) AND EUROPEAn Italian company with Panamanian suppliers has set up its distribution centre in Spain using our tax representation services. Thus, it can sell the products it imports from Panama to its Spanish customers DDP, and pass import duty costs onto them. In addition, it can distribute the same goods to customers in other VAT-exempt countries.
- GROUP OF FRENCH IMPORTERS AND A DISTRIBUTOR OBTAIN TAX BENEFITS FROM NOT HAVING TO PAY VAT ON THEIR IMPORTSSeveral French companies belonging to the same group import goods from Peru without paying import VAT and then sell them to one of the French companies in the group, which is the Spanish distributor. When the importing companies sell their goods, they pass on the VAT to their Spanish distributor which, in turn, charges its Spanish customers VAT on their purchases.
- DUTCH COMPANY WITH ASIAN SUPPLIERS AND SPANISH CUSTOMERS BENEFITS FROM NOT HAVING TO PAY VAT ON THEIR IMPORTSA Dutch textile company buys goods from its Chinese suppliers and then distributes them in Spain and Europe without paying VAT on their imports. Goods are sold DDP and delivered directly to the company’s end customers.
- ASIAN COMPANY SETS UP DISTRIBUTION CENTRE IN SPAIN WITHOUT HAVING TO PAY IMPORT DUTYA Hong Kong-based company brings goods from Asia and stores them in a tax warehouse. It subsequently distributes these goods to its Spanish customers who are the ones that withdraw the goods from the warehouse with zero import VAT, as they defer or subsequently deduct this VAT.
- FRENCH COMPANY MARKETING MEXICAN SOFT DRINKS DISTRIBUTES THESE PRODUCTS IN SPAIN AND THE EU FROM SPAIN WITH THE ADVANTAGE OF NOT HAVING TO PAY IMPORT DUTYA French firm imports raw materials to Spain to produce soft drinks without paying import duty and, according to the type of goods, it uses a special customs scheme or benefits from not having to pay import VAT. Therefore, its end customers do not have to pay VAT when buying the goods.
- ASIAN FIRM SELLING IN THE AUTOMOBILE INDUSTRY SETS UP DISTRIBUTION CENTRE IN SPAIN FOR EUROPEAN GOODS AND EUROPEAN CUSTOMERS WITHOUT PAYING IMPORT DUTYAn Asian firm buys vehicle parts in Portugal and sets up its distribution centre in Spain for its Spanish and European customers. The advantage of having a tax representative in Spain is that it does not have to pay import VAT and therefore does not have to pass on VAT to its customers.
- DANISH FISH MARKETER BUYS RAW MATERIALS IN NORWAY AND CENTRALISES THEIR DISTRIBUTION IN SPAIN WITHOUT HAVING TO PAY IMPORT DUTYA Danish company buys raw materials from Norway and other European countries and processes them in Spain. It subsequently distributes them in Spain and in other European and non-European countries. The Danish company defers VAT when it distributes its goods in Spain, and qualifies for the tax benefit of not having to pay import duty by using the special customs scheme in other European countries.
TAX SOLUTIONS TAILORED TO YOUR BUSINESS
We have expert staff on hand who are in constant contact with the Spanish Tax Agency offices, are well versed in tax issues, and have considerable experience in export, import and intra-community operations.
we can advise and offer you tax solutions tailored to your logistics and customs operations.
- We reduce the tax and administrative red tape making it easier to obtain your Spanish tax number.
- We represent you in your dealings with the tax authorities.
- We take care of all the administrative red tape.
- We offer advice as soon as you start trading in Spain.
- Our agents can take the hassle out of your dealings with the Spanish Tax Agency, making your business run more smoothly.
- We make sure your trading operations are carried out in line with Spanish tax laws.