Spanish VAT deregistration changes

Thu 28th Apr 2011

For foreign companies registered for Spanish VAT, the process of closing the VAT number – VAT deregistration – has been recently updated.

All communications with the tax authorities must now be processed electronically, i.e. through email. The tax office now has the option to compel any company which has closed its VAT number in the past four years to provide a mechanism to correspond by email to review VAT compliance issues.

If a non-resident company closes its Spanish VAT number prior to the financial year end, it must still submit an annual return.

The Spanish authorities have the right to re-open the affairs of any foreign company up to four years after they have deregistered. The local fiscal representative shares the joint liability for four years too.