VAT number: What is it and how do you apply for it?

The VAT number is the tax identification number you need to carry out commercial transactions with customers in other European Union countries. To obtain it, you must contact the Spanish Tax Agency (AEAT), which will first have to assess your application. Once you have obtained your VAT number, it will be listed in the Register of Intra-Community Operators (Registro de Operadores Intracomunitarios, ROI), and you will be able to carry out intra-Community transactions with it.

The VAT number, also known as the intra-Community NIF (NIF intracomunitario), is a tax identification number that allows you to carry out commercial activities with customers in the European Union. This number must appear on your intra-Community invoices since, as you probably know, VAT (IVA) does not have to be added to this type of transaction.

How do you apply for a VAT number in Spain?

To start the application, you must have a Tax Identification Number (Número de Identificación Fiscal, NIF). If you already have one, you simply need to request your VAT number from the Tax Agency, either by going to the office nearest your address or through its online portal (sede electrónica) if you have a digital certificate, an electronic national ID card (DNI electrónico), or Cl@ve PIN.

The VAT number is not issued immediately, and the process may take up to three months. If you have gone longer than that without a response, it may be inferred that your application has been rejected.

To obtain a VAT number, it is essential to have a NIF. Therefore, if you do not yet have one, when registering as an intra-Community operator you will also need to:

• Apply for a Tax Identification Number (NIF).

• Register in the census of business owners, professionals, and withholding agents (censo de empresarios, profesionales y retenedores).

Of course, these applications can be made as part of the same procedure.

Are the NIF and the NIF-IVA, or VAT number, the same thing?

The main difference between the NIF and the VAT number is that the latter consists of the initials of the country of residence followed by the NIF. Thus, the VAT number of a self-employed professional in Spain would be ES followed by their NIF.

Naturally, the two numbers serve different purposes. For example, the NIF is only needed to issue invoices in Spain, whereas you will have to use the VAT number for your intra-Community transactions.

Why is it important to have a VAT number?

The main advantage of invoices issued to or received from EU customers where both the customer and the issuer have a VAT number is that VAT does not need to be added (whereas it would have to be charged on an invoice within Spain). In this respect, it is highly beneficial for both parties and, above all, much simpler to account for, because no Personal Income Tax (IRPF) withholding has to be applied either.

In addition, having a VAT number means being registered in the Register of Intra-Community Operators. But what is the ROI or VIES? Basically, it is a public register that you can access to check whether your customer’s intra-Community NIF is active.

How can you check whether a VAT number has been obtained?

You can check through the VIES system or the Register of Intra-Community Operators whether an intra-Community VAT number is correct. It is important to check this in advance to avoid problems with the Tax Agency. If the VAT number you have requested does not appear in the register, this may be because:

• It does not exist.
• It has not been activated.
• The registration has not been completed.

In this regard, the relationship between the VAT number and VIES (a frequent source of confusion) is that the former is the VAT number itself, while the latter is the register in which the intra-Community VAT number is recorded.