Applying for Spanish VAT may seem straightforward, but businesses often make mistakes that can delay the process or lead to penalties. One common mistake is failing to submit the required documents with your VAT application. Be sure to provide all necessary paperwork, such as your company’s legal documents and proof of business activities.

Another mistake is misunderstanding the VAT rates that apply to your products or services. If you charge the wrong VAT rate, it could result in financial penalties or the need to pay back the incorrect amount of tax. Ensure you are familiar with which VAT rates apply to your specific business sector.

Lastly, keeping track of your VAT filings and deadlines is crucial. Missing a VAT return can lead to fines and interest charges. Set up reminders to ensure you submit your VAT returns on time and stay compliant with Spanish tax laws.

VAT reporting in Spain