From July 1, 2021, the conditions to buy any product that comes from outside the European Union have changed. From that date, everything you buy online is subject to VAT. So far, goods with a value of up to 22 euros did not have VAT or customs procedures but the rules have changed since the summer of 2021 and prices go up for the end customer. Now it will be more difficult to buy pens on AliExpress for a few euros or a mobile phone case.
What is VAT number
The VAT number is an identification number to operate in European territory. VAT meanta Value Added Tax and it is a tax identifier of the European Union, an identification number used in various countries that allows us not to have VAT between companies or professionals in the European Union as long as we meet certain requirements and have previously requested said number.
Namely, having the VAT number is a type of identification that allows us not to pay VAT when we carry out commercial operations between member countries. It adds a tax advantage for companies since they will be able to carry out VAT-exempt operations. In short: VAT allows us to issue VAT-free invoices when transactions are carried out between companies or between freelancers in the European Union. Without it we can buy online? Yes, of course. We do not need VAT to buy online or for intra-community operations, but without it we will not be able to benefit from the option to “deduct VAT” from the operation you carry out.
Differences with the NIF and CIF
The NIF o Tax Identification Number is the tax identification number used in Spain for all natural persons or legal entities. And what is the difference between the NIF and the CIF? None. The NIF and the CIF have always been differentiated because the NIF was designed for “natural persons” while companies used “CIF”. But since 2008 the term has been unified and used interchangeably for both, although it is usually used in a common way to differentiate between companies and people despite the fact that it was more than ten years since the change.
VAT is not the same as CIF or NIF. It is composed of this, but adding the word acronyms of the country to which you belong. The NIF is a necessary identification number in Spain and the VAT gives us that identification at the intra-community level. The code would be the NIF or CIF preceded by the country identifier. That is, if your NIF is 12345678W the VAT would be ES12345678W.
How to get
As we have said before, you do not need VAT to buy online if you are going to continue shopping online on AliExpress. They won’t ask you. In fact, nor you can have the VAT number if you are not “registered” as an entrepreneur or professional. But if you have it, you will be able to deduct VAT from these operations and you will not be able to benefit from this advantage. So if you have decided to request it, we will explain how to get it through some procedures at the Tax Agency.
Model 036
To request it, as explained by the Tax Agency, we must do so through the presentation of form 036. As explained by the entity:
“It will be requested by the interested party through registration in the” Registry of intra-community operators “(ROI), filling in form 036 of” Census declaration of registration, modification or cancellation in the census of businessmen, professionals and retainers “as follows : Checking box 582
To register as a registry of intra-community operators we have to mark box 582 of the model 036 of the Tax Agency. As explained from the “Practical guide for the registration census declaration”, it is intended for people who are in these cases:
- People or entities that are going to make intra-community deliveries or acquisitions of goods subject to said tax.
- The persons or entities referred to in article 14 of Law 37/1992, of December 28, on Value Added Tax, when they are going to make intra-community acquisitions of goods subject to said tax.
- Entrepreneurs or professionals qwho are recipients of services provided by businessmen or professionals not established in the territory of application of VAT with respect to which they are taxable persons.
- Entrepreneurs or professionals that provide services that, in accordance with the localization rules, are understood to be carried out in the territory of another Member State when the taxable person is the recipient of these.
If you want to cancel it, the procedure will also be done through the Tax Agency form 036 but the box that we must fill will be another. In this case would be box 583 that marks the cancellation in the Register of intra-community operators. What’s more, we must fill in box 584 with the date of withdrawal.
Once you have submitted it, the Tax Agency must resolve it within three months. If it is not resolved within that period, it can be considered denied.
Modify
If you had already submitted form 036 years ago when you started the activity as a professional, the Tax Agency allows you carry out the process of modifying the data from the website accessing with electronic ID, for example. You can see an epigraph of “modification of my census data”With several links depending on what you want to modify in model 036 and model 037.
- Consultation and modification of the tax address and the address of notifications (My census data)
- Consultation and modification of data related to VAT and Personal Income Tax
- Consultation and modification of census data of the Non-Resident Income Tax
- Consultation and modification of data related to withholdings and payments on account
- Consultation and modification of data related to Corporation Tax
- Consultation and modification of data related to activities and venues
- Consultation and modification of data related to representatives
- Obtaining a new NIF accreditation card
Check if you already have it: VIES
Once you have already requested it, you can check if you have it or not. For that, we can use VIES and check whether or not we are registered. VIES is a tool that allows us to know if a company or person professional meets the requirements to operate in the European Union. That is, it allows us to check whether or not we are registered as such. You can verify the validity of a VAT number of a country by filling in a series of data …
As explained from the European Commission’s own page, “the VIES system (” VAT information exchange system “) is a search engine (not a database) belonging to the European Commission. When doing a search in VIES, data are extracted from national VAT databases. The result can appear in two ways, depending on whether the VAT data exists (valid) or not (invalid) “
You simply have to go to “Validation of VAT number in VIES”And fill in the data on the European Commission website, fully available in Spanish. You must choose the Member State in the drop-down menu and fill in a series of data:
- Number of IVA
- Name
- Company type
- Street
- Postal Code
- City
Once filled in, choose “Find out”.
We can also consult it from the Tax Agency If you go to the Spanish intra-community VAT Operators Consultation section. You simply have to enter your NIF and it will automatically add the code “ES”. Once you have filled it in, it will tell you whether or not there is an intra-community operator in Spain with that VAT number. In addition, it explains what you must do to have it.