CAN ANYBODY SHED ANY LIGHT ON THIS FOR ME PLEASE? I AM A UK RESIDENT. I AM HOPING TO BUY MY SUPPLIES FROM A SPANISH COMPANY. MY BUSINESS WILL BE SMALL. I DO NOT NEED TO BE VAT REGISTERED IN THE UK AS I WILL NOT EXCEED THE THRESHOLD FOR VAT SO THEREFORE WILL NOT BE ATTEMPTING TO CLAIM ANY VAT BACK. TO BUY FROM THE SPANISH COMPANY DO I NEED A CIF NUMBER OR DO I NEED TO BE REGISTERED IN SPAIN AS NON RESIDENT COMPANY. I HAVE READ ON THE NET YOU NEED TO DO THIS CERTAINLY IF YOU ARE GOING TO CLAIM THE VAT BACK. OR CAN I JUST GO AHEAD AND BUY THE SUPPLIES AND NOT BE VAT REGISTERED HERE OR IN SPAIN. I CANT SEEM TO FIND THIS INFO ON THE NET ONLY INFO FOR COMPANIES THAT NEED TO CLAIM THE VAT BACK. I DO HOPE SOMEBODY CAN HELP. THANKS.

Generally, if you want to receive goods from another EU community member country without paying VAT in the originating country, you will need to be registered to do so in the EU Taxation and Customs database. If you are not registered there, any supplier should charge you VAT at their rate. If they charge you with VAT included, then you can be treated as a general consumer and therefore do not need to be registered in Spain, nor in the UK. Speak to your accountant though. And to your supplier, it’s possible that their policy is to only deal ‘trade’ with VAT registered companies, if this is the case, the most logical thing would be to register at home.

Can’t see how you can register in Spain if you are UK based and not declaring for tax in Spain. This probably needs professional advice as it is an area where you can’t afford to get it wrong! Also come to think of it (from another post the other day) Spain is unlike the UK in that there are no thresholds for VAT (IVA here) as all businesses must charge it no matter what their turnover.