Once your application for Spanish VAT is approved, it’s crucial to understand the subsequent steps to maintain compliance. You will need to begin charging VAT on your sales, issuing invoices correctly, and submitting regular VAT returns to the Agencia Tributaria. Depending on your business size and the frequency of your transactions, you may be required to submit these returns monthly or quarterly.

As a VAT-registered business, you are also responsible for keeping detailed records of all transactions, including sales, purchases, and VAT payments. These records must be kept for a minimum of four years in case of an audit. Many businesses find it useful to use accounting software to track VAT and generate reports, making it easier to submit returns on time and stay organized.

If you incur VAT on your business expenses, you may be entitled to reclaim it through your VAT returns. This can help reduce your business costs and ensure you are operating efficiently.

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