Buying in UK / Selling in Spain

[Beachbabe]

Help ! - Does anyone know the procedure when buying goods from the UK for resale in Spain ? I could use some advice on the way to treat the VAT.

[MrGrumpy]

Are you a UK VAT registered company, or a Spanish Company, or Autonomo etc... ?

[Beachbabe]

Spanish Resident / Autonomo.

[Mekon]

What % VAT do you pay at the moment ?
Are you registered on the European Traders List ?

[Beachbabe]

Hi, thanks for your replies.
Perhaps I should clarify that although I am an Autonomo at the moment, at this stage I am not paying IVA / VAT on anything imported from the UK, nor am I registered on any 'European traders list' (but thanks for the heads up on this one !) - it is just something that I am looking into as a possibility at the moment.

[Mekon]

You are Autonomo already, so that is the easy bit. The next thing you should do is find a good Asesor who is experienced in these things. Ask for recommendations, as you can bet your bottom dollar that if you ask the Asesor himself he will say that he is, only for you to come unstuck further down the line.

The next things is the question of whether you pay VAT in the UK for the goods that you have bought there. IF you are on the European Traders List you should not pay any VAT and so you should ensure that you are enrolled on this list as soon as you decide to import from the UK.

Then it is just a matter of paying your Spanish IVA on the sale of the goods - 18%

Also, IF you are charged VAT in the UK you can not then reclaim it in Spain.

This is a very confusing issue and takes some getting your head around, which is why it is so important to be sure that your Asesor at least has a handle on the situation !

[Beachbabe]

An acquaintance told me they pay 22% IVA - why the difference here ?

[MickeyB]

I second what Mekon says - the situation IS very confusing and you SHOULD get an Asesor who is experienced in these matters.

BUT - if you are looking for a layman's explanation (in my limited understanding of the matter) ....

If you are registered in Spain as a small retailer and buy goods from EU member states you must pay IVA at 22% when you purchase. However, you do not have to pay the IVA upon sale of the items, even though you raise a Factura to your clients at 18%.

So you pay the Tax man 22% on the NETT value of the goods, but charge your client 18% on the GROSS value. The 4% (Nett) difference, I suppose allows for any profit that you may make on the sale of the item.

(...or at least that's how I see it !)

[Beachbabe]

Thanks guys ! You have been a big help.

[CostaGratis]

You will need to register with and get a number from the Hacienda aswell.