How to declare VAT for your online store?
Posted: Thu Jan 23, 2025 8:08 am
E-commerce continues to grow. With 7 out of 10 Spanish Internet users buying online, the third quarter of 2018 closed with 10 billion euros in sales in Spain , almost 30% more than the previous year, according to the National Commission of Markets and Competition . If you are considering taking advantage of the potential of this sector and opening your own e-commerce, it is important that you are clear about the tax system.
Don't forget that VAT on online stores will have an impact on the final price of your products and, therefore, on your sales and profits . Knowing how much you will have to pay to the colombia mobile phone number data Treasury on a quarterly basis will also allow you to form a more precise idea of your expenses, so that you can estimate your profits and take corrective measures in time.
Do I have to declare VAT for my online store?
First of all, keep in mind that to operate an online store you must register with the Treasury and Social Security , even if you do not sell much, since the obligation to regularize your tax situation comes from the regularity with which you carry out the activity, not from the income you obtain. However, the VAT declaration of your e-commerce store will depend on the tax figure you choose .
If you register as self-employed , you must indicate your sector in the section on Tax on Economic Activities . Online stores can be classified as “Retail trade by mail or by catalogue”. This means that your online business is under the tax regime of equivalence surcharge , so that when you buy from your supplier, you will have to pay an additional surcharge on top of VAT.
The types of equivalence surcharge currently applied are:
General VAT at 21% – equivalence surcharge of 5.2%
VAT reduced to 10% – equivalence surcharge of 1.4%
Super-reduced VAT of 4% – equivalence surcharge of 0.5%
The main advantage of this system is that you do not need to declare the VAT of the online store to the Treasury in your quarterly taxes , which makes accounting easier. The negative aspect is that you cannot deduct the VAT from your purchases, since this system is designed so that you pay this tax directly to your suppliers. You must also consider that, by applying the equivalence surcharge, if you want to be profitable, you will have to increase sales or raise the price to the consumer.
If you do not want to pay the equivalence surcharge, which is mandatory for self-employed retailers , i.e. those who act as intermediaries between the wholesaler and the end customers, since it is not applied if you sell your own products, you must manage the VAT of your online store as a commercial company . This means that you will have to declare and return to the Treasury all the VAT that you include in each of your online sales, although you can also deduct the VAT that you pay on your purchases.
What happens if I work with foreign suppliers?
If your suppliers are not in Spain, you will not have to pay them VAT, as these companies are not responsible for paying that money to the Spanish Tax Agency. In that case, you will have to declare the VAT and pay it to the Treasury quarterly, in addition to paying the equivalence surcharge on purchases made from your suppliers .
If your suppliers are from the European Union , you must submit the annual information form for intra-community operations . In fact, you must be registered in the register of intra-community operators and have the VAT, the identification number for those who carry out operations at a European level. If your suppliers are located outside the European Union, you will have to pay the VAT and the equivalence surcharge directly to Customs .
Don't forget that VAT on online stores will have an impact on the final price of your products and, therefore, on your sales and profits . Knowing how much you will have to pay to the colombia mobile phone number data Treasury on a quarterly basis will also allow you to form a more precise idea of your expenses, so that you can estimate your profits and take corrective measures in time.
Do I have to declare VAT for my online store?
First of all, keep in mind that to operate an online store you must register with the Treasury and Social Security , even if you do not sell much, since the obligation to regularize your tax situation comes from the regularity with which you carry out the activity, not from the income you obtain. However, the VAT declaration of your e-commerce store will depend on the tax figure you choose .
If you register as self-employed , you must indicate your sector in the section on Tax on Economic Activities . Online stores can be classified as “Retail trade by mail or by catalogue”. This means that your online business is under the tax regime of equivalence surcharge , so that when you buy from your supplier, you will have to pay an additional surcharge on top of VAT.
The types of equivalence surcharge currently applied are:
General VAT at 21% – equivalence surcharge of 5.2%
VAT reduced to 10% – equivalence surcharge of 1.4%
Super-reduced VAT of 4% – equivalence surcharge of 0.5%
The main advantage of this system is that you do not need to declare the VAT of the online store to the Treasury in your quarterly taxes , which makes accounting easier. The negative aspect is that you cannot deduct the VAT from your purchases, since this system is designed so that you pay this tax directly to your suppliers. You must also consider that, by applying the equivalence surcharge, if you want to be profitable, you will have to increase sales or raise the price to the consumer.
If you do not want to pay the equivalence surcharge, which is mandatory for self-employed retailers , i.e. those who act as intermediaries between the wholesaler and the end customers, since it is not applied if you sell your own products, you must manage the VAT of your online store as a commercial company . This means that you will have to declare and return to the Treasury all the VAT that you include in each of your online sales, although you can also deduct the VAT that you pay on your purchases.
What happens if I work with foreign suppliers?
If your suppliers are not in Spain, you will not have to pay them VAT, as these companies are not responsible for paying that money to the Spanish Tax Agency. In that case, you will have to declare the VAT and pay it to the Treasury quarterly, in addition to paying the equivalence surcharge on purchases made from your suppliers .
If your suppliers are from the European Union , you must submit the annual information form for intra-community operations . In fact, you must be registered in the register of intra-community operators and have the VAT, the identification number for those who carry out operations at a European level. If your suppliers are located outside the European Union, you will have to pay the VAT and the equivalence surcharge directly to Customs .