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E-commerce dissolves borders between countries when it comes to buying, thanks to online sales. Hence the importance of understanding the tax regime in which they operate, because did you know that the tax regime can affect not only the day-to-day management of your business, but also its profitability? In Spain, the tax regulations that affect online sales depend on different factors, such as the types of products and services, as well as the nature of the transactions carried out.
Legal aspects you must know for your online store
When launching or managing an online store in Spain, you must not only worry about the quality of your products and the efficiency of your services, but also about complying with a series of legal and tax requirements. These are essential to operate legitimately and avoid issues with tax authorities.
Tax regime for online sales
To ensure that your online business is not only profitable but also legal, you must know and understand the different tax regimes available and how each one affects your business model. Below we review the main VAT regimes that may apply to your online operations.
General VAT Regime
The General VAT Regime applies to most online sales, provided that the seller is a business owner or professional resident in Spain and sells to consumers within the Spanish territory.
Under this regime, you must apply and collect VAT according to the nature of the product or service; for example, the general rate of 21%, the reduced rate of 10% or the super-reduced rate of 4%.
In addition, you must periodically file VAT returns with the Tax Agency.
Surcharge of equivalence regime
This is a special regime for retailers who buy and sell products without making significant transformations. Under this regime, you do not need to settle the VAT on your sales directly, but you must pay an additional surcharge when purchasing products, which is paid by your suppliers.
This option simplifies VAT management but has limitations and is not applicable to all commercial activities.
Simplified VAT Regime
This is ideal for small business owners and freelancers, as it offers a less complex way to comply with tax obligations.
This simplified regime is based on estimated income and allows VAT to be calculated using coefficients and modules, reducing administrative burden and facilitating tax planning.
Tax obligations for online sales
Keeping your business compliant with tax laws does not end with choosing the right VAT regime. Several obligations must be met to ensure your online operations remain transparent and legal.
Registering with the Tax Agency
Before starting any online commercial activity, you must register as a business owner or professional with the Tax Agency. This is the first step in complying with tax regulations and allows you to obtain the tax identification number needed to operate.
Filing VAT returns
As an online seller under the general regime, you must file quarterly or monthly VAT returns depending on your transaction volume. These declarations detail the VAT collected on sales and the VAT paid on purchases, determining the amount to pay or deduct.
Keeping accounting records
Maintaining orderly and detailed accounting is essential, not only for complying with tax laws but also for effectively managing your business. Accounting must reflect all commercial transactions and be available for review by authorities.
Paying the corresponding taxes
Finally, it is your responsibility to ensure that taxes calculated—including VAT and any other applicable taxes—are paid on time and properly to the Tax Agency.
What VAT do online stores pay?
Do you know how to determine the correct VAT rate and the particularities that may arise depending on the type of product or service and the customer’s location? It is normal to have doubts. In fact, one of the most critical aspects of managing an online store is precisely understanding which VAT must be applied to sales.
We have already seen that the applicable VAT rates vary and are clearly defined depending on whether it is the general VAT rate (21%), the reduced rate (10%) or the super-reduced rate (4%). But how do you know which one to apply in such a diverse environment as e-commerce?
First, it is essential to identify the nature of the product or service. For example, if you sell e-books, you will apply the super-reduced rate. If you offer electronic accessories, you must apply the general rate. In addition, if your customers are outside Spain but within the EU, you must consider intra-community VAT rules.
It is also essential to consider exceptions and special cases. For example, if you offer digital services to consumers in other EU countries — such as music downloads or software — you must apply the VAT rate of the customer’s country, not Spain’s. This is managed through the MOSS (Mini One Stop Shop) system, which simplifies VAT declaration and payment for these services across the EU.
Understanding this not only ensures compliance with the law, but also prevents you from imposing incorrect tax charges on customers, which can negatively affect the shopping experience and the perception of your store.
What happens with purchases from non-Spanish suppliers?
An important question arises from the fact that online stores frequently interact with international suppliers, both within and outside the EU. These transactions raise specific questions about how VAT and other taxes should be managed.
Suppliers within the European Union
When buying goods or services from EU suppliers for your business, VAT is generally not applied on the supplier’s invoice thanks to the intra-community VAT system. Instead, it is your responsibility to self-assess VAT in Spain, applying the corresponding rate to the acquired goods or services as if you had sold them yourself. This is known as reverse charge or self-assessment.
However, for sales to customers in other EU countries, you must apply the VAT rate of the customer’s country. This ensures taxes reflect actual consumption in each member state. This process can also be handled via the MOSS system.
Suppliers outside the European Union
Importing goods from non-EU countries involves VAT and possibly customs duties. When receiving products in Spain, you must pay import VAT, calculated on the total value of the import, including product cost, transport and insurance. Depending on the type of product, customs tariffs may also apply.
How do I pay IRPF if I have an online store?
If you own an online store, it is essential to understand how your income affects your IRPF declaration, especially if you operate as a freelancer or sole proprietor in Spain.
Income from operating an online store is considered economic activity. This means you must declare your net income (gross income minus deductible expenses) in your IRPF declaration. The taxable base is then combined with other income sources you may have.
Freelancers must keep detailed records of all income and expenses. Deductible expenses can include goods costs, advertising, hosting and domain, shipping, packaging, etc. These must be justified with invoices and accounting documents.
You must also make quarterly IRPF payments based on previous earnings. This distributes the tax burden throughout the year.
Depending on your income and personal situation, you may be eligible for tax deductions.
Companies and freelancers: declaring online sales
Whether you operate as a freelancer or a company, online sales must be properly recorded and declared to comply with tax obligations. This not only includes the VAT and IRPF declarations mentioned previously, but also any other specific requirement applicable to your business.
For companies, it is essential that accounting accurately reflects all transactions. Companies are usually required to maintain more rigorous accounting than freelancers, including balance sheets, profit and loss statements, and cash flow statements. This information is not only required by the Tax Agency but also by shareholders and other stakeholders.
In any case, both freelancers and companies must ensure that their accounting and tax systems are well organized and updated to avoid errors that could lead to penalties or overpayments.
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Remember that on the SeQura blog you can find more articles of interest to help you stay up to date with the latest trends and best practices in e-commerce.
Are you interested in knowing how we can help you grow and strengthen your online business? If you have an online store and want to offer exceptional shopping experiences to your customers, at SeQura we provide innovative payment solutions adapted to the needs of today’s market. Do not hesitate to visit our website and contact us to discover everything we can offer you. Contact us and start transforming the shopping experience in your eCommerce.
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