EU tax reference

A VAT number, also referred to as a value-added tax identification number (VATIN), identifies a business registered for VAT purposes. EU business customers may use their valid intra-Community VAT number for eligible cross-border transactions.

EU VAT rules for cross-border distance sales changed on July 1, 2021.

As of July 1, 2021, the previous individual distance-selling thresholds for EU Member States were replaced by a common EU cross-border threshold, together with the One-Stop Shop framework for eligible transactions.

• For customers located in Spain, Spanish VAT is applied where required by applicable tax law.
• For customers located in other EU Member States who do not qualify for intra-Community B2B reverse-charge treatment, the applicable VAT is generally determined according to the customer's destination country.
• For eligible Business Buyers established in another EU Member State, a valid intra-Community VAT number may allow VAT to be removed under the applicable reverse-charge treatment when the legal requirements are satisfied.

The One-Stop Shop scheme (OSS) allows eligible cross-border EU VAT to be collected using the VAT rate applicable in the customer's destination country and reported through a single EU Member State of identification.

EU Business Buyers outside Spain

Business Buyers established in another EU Member State can enter their valid intra-Community VAT number directly in the Company VAT number field during online checkout.

The VAT number is validated electronically through the European Commission's VIES system.

Where the VAT number is successfully validated and the order satisfies the applicable requirements for an eligible intra-Community cross-border transaction, VAT is removed automatically at checkout and the applicable reverse-charge treatment is applied.

A valid VAT number does not, by itself, establish that every transaction qualifies for VAT-free treatment. The applicable VAT treatment depends on the circumstances of the transaction and the requirements of applicable tax law.

If VIES validation cannot be completed at checkout, the reverse-charge exemption is not applied automatically and VAT may be charged by default.

For offline orders placed by Purchase Order or paid by bank transfer, the Buyer should provide the applicable VAT number and complete billing information before the proforma invoice or invoice is issued so that the appropriate VAT treatment can be verified.