A VAT number, also referred to as a value-added tax identification number (VATIN), is required to charge VAT. It's provided to you by a member country's tax authority after you register with them.
Tax laws for selling to EU member countries changed on July 1, 2021.
As of July 1, 2021, distance selling thresholds for individual countries no longer apply. Instead, a single distance selling threshold applies for the entire EU.
- For customers located in Spain, spanish local VAT 21% rate is charged.
- For customers in EU countries outside Spain, the rate is determined by the VAT rate in the customer's location for all sales to other countries.
A new One-Stop Shop scheme (OSS) is available as of July 1, 2021. The OSS scheme allows merchants to collect and remit VAT for sales in all EU member countries, rather than registering for each member country individually.