Selling products or providing services to clients in other European Union countries adds an extra layer of complexity to VAT that many self-employed workers only discover once they already have their first international client. Understanding the basic logic prevents costly invoicing mistakes.
The essential prior step: registering on the ROI
Before you can invoice other EU businesses without VAT, you need to register with Spain's Register of Intra-Community Operators (ROI), obtaining what's known as a VAT number (your tax ID with the "ES" prefix in front, recognized for intra-community transactions). Without this registration, you shouldn't apply the VAT exemption regime to these transactions, even if the client genuinely is a business in another European country.
The general rule: invoice businesses without VAT (not individuals)
When you provide services or sell goods to a business (not an individual consumer) in another EU country, and both parties are correctly registered in the VIES system (the intra-community operator verification system), the transaction is invoiced without Spanish VAT, shifting the obligation to self-assess the corresponding VAT to the client itself in their own country (the reverse charge mechanism).
Why you must verify the client's VAT number
Before issuing an invoice without VAT to an EU client, it's essential to check that their VAT number is valid and correctly registered in the European Commission's VIES system. If you invoice without VAT a client whose VAT number isn't validated, and it's later determined that the transaction didn't meet the requirements for exemption, you could end up personally liable for paying the VAT that should have been charged.
When you do need to apply Spanish VAT
If you sell to an individual in another EU country (not a business), as a general rule you must apply VAT, although the specific rules (applying Spanish VAT or the destination country's VAT) depend on your sales volume to individuals in other countries and on special schemes such as the One-Stop Shop (OSS), designed to simplify these filings once certain thresholds are exceeded.
The additional filing: form 349
In addition to the regular quarterly VAT return (modelo 303), anyone carrying out intra-community transactions must periodically file form 349, an informational return (not a payment) detailing the intra-community transactions carried out, which is later cross-checked against the information the other party declares in their own country through the VIES system.
Start with solid VAT calculations
Although intra-community transactions are usually invoiced without VAT, as soon as you invoice domestic clients or individuals within the EU, you'll need to apply the corresponding VAT again. Our VAT calculator helps you quickly calculate those amounts on your domestic invoices.