VAT : distance sales in Spain

Distance sales Spain 2012 iva

What is distance selling?

Distance sales are those sales that occur without the simultaneous physical presence of the buyer and seller.  When trading between the two parties, the proposed contract is transmitted from the seller to the buyer, who accepts by any means of distance communication. In the case of Europe, distance sales occur when a member of the EU, with a VAT number, trades with another member with out a VAT registered number.

Examples of distance sales :

  • Contract made by mail
  • Contract made by phone
  • Contract made by Television
  • Contract made by radio Continue reading
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How to create an invoice in Spain ?

After creating your business in Spain, the first thing to know is how to write a bill in Spain. While it is not very different from other countries, it is interesting to know what to insert in the bill, and do not forget to mention the CIF of the two companies.

A bill in Spain is as follows :

  • the name of your company, its registered office and CIF,
  • the name of the client company, its registered office and CIF,
  • a unique invoice number,
  • the name of the product or service and the unit price,
  • the amount of the bill in three stages: the amount excluding VAT, the amount of VAT, and the total amount.

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Start a business in Spain : understanding Spanish terms

creer-societe-espagneWhen starting a business in Spain,  you will face many Spanish words at first difficult to understand. 

This article will enlighten you on these terms, explaining, for each of them, the Englishequivalent.

NIE (Número de Identificación de Extranjeros) : The NIE is the identification number of a foreigner in Spain. It is essential to Spain in order to create your company, open a bank account and almost all the paperwork. You can get this NIE, whether European or not. This edition includes 8 or 9 characters and starts with an “X” or a “Y”.

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Taxation system : Spanish VAT

VAT-rates-españaFirst, to start a business in Spain, is assigned a CIF (Código de Identificación Fiscal). This number is the tax identification number of his company.

With this number you can carry out activities in Spain, but also throughout Europe.

It is not require to include VAT on customer bills by members of the European Union, and conversely, they do not charge if you are registered in the VAT register.

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