Set up Spanish taxes in your Shopify store

In this article, we will discuss:

• Tax settings
  • Display product prices including VAT
  • Display product prices excluding VAT
• Tax rates in Spain and the EU
• Selling goods to customers in Spain
• Selling goods to customers in other EU Member States
  • Selling as a micro-business
  • Surpassing the micro-business threshold
  • Selling with a country-specific registration
• Selling digital services
• Selling goods outside the EU
• Where to find further information
• Invoices

If you want to charge VAT to some customers and not to others, you can configure how VAT is displayed in your product prices in your Shopify store.

If you are selling mainly to consumers (B2C), you may prefer to display product prices as including VAT.

To display your product prices including VAT, but still allow your business customers to have VAT deducted at checkout:

If you sell to consumers (B2C), display your product prices including VAT.

Under Spanish consumer protection and pricing rules, prices shown to consumers must be final prices that include VAT and any other taxes, and any additional delivery charges must be shown before checkout.

To display your product prices with VAT included:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Additional configuration section, turn on Include sales tax in product price and shipping rate.
3. Click Save to apply the changes.

Optionally, you can enable dynamic tax inclusion. This Shopify feature automatically includes or excludes VAT based on the customer's region and adjusts the tax rate accordingly.

Tax display is set for each market. To activate dynamic tax inclusion:

1. In your Shopify admin, go to Markets and click the market you want to configure.
2. In the Inherited section, click the + icon next to Taxes and duties.
3. Under Tax display, select Dynamic tax display, then click Done.
4. Click Save to apply the changes.

If your store sells exclusively to businesses (B2B), you can choose to have your product prices displayed as excluding VAT.

To display your product prices excluding VAT:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Additional configuration section, turn off Include sales tax in product price and shipping rate.
3. Click Save to apply the changes.

To disable dynamic tax inclusion in a market and show VAT as a separate line at checkout:

1. In your Shopify admin, go to the Markets page and click the market you want to configure.
2. In the Inherited section, click the + icon next to Taxes and duties.
3. Under Tax display, select Show as line item, then click Done.
4. Click Save to apply the changes.

As of 2026, the current rate of VAT (IVA or Impuesto Sobre el valor añadido) in Spain is 21%.

Reduced VAT rates of 10% and 4% apply to specific goods and services, including qualifying food products, books, medicines, passenger transport, and certain medical products.

A 0% rate may apply to particular transactions under specific legal conditions, and some goods and services are VAT-exempt.

The applicable VAT rate depends on the classification of the product or service and the date of the transaction.

The Canary Islands, Ceuta, and Melilla are outside the territorial scope of Spanish VAT. The Canary Islands apply their own indirect tax (IGIC), and Ceuta and Melilla apply IPSI.

If your business is established in mainland Spain or the Balearic Islands and uses the regular VAT regime, you charge Spanish VAT on taxable domestic sales of goods, whether your customers are businesses (B2B) or consumers (B2C).

Spain doesn't have a general annual turnover threshold that exempts small businesses from charging VAT, as some other EU countries do.

However, certain transactions may be exempt, and special VAT regimes may apply depending on your business activity.

If you're selling goods to VAT-registered businesses (B2B) in other EU member states, these sales are exempt from Spanish VAT (with the right to deduct input VAT).

As long as your customer has a valid EU VAT number issued by another member state and the goods are transported to that member state.

You must keep evidence of the transport, include the required VAT information on your invoice, and report these sales in your VAT return and your intra-Community sales statement (Form 349).

To make these sales, you also need to be listed in the Register of Intra-Community Operators (Registro de Operadores Intracomunitarios, or ROI). The customer accounts for the VAT in their own country.

If you're selling goods to consumers (B2C) in other EU member states, you charge VAT. The rate depends on whether your sales exceed the €10,000 EU threshold.

If your cross-border B2C sales to other EU countries (distance sales of goods plus telecommunications, broadcasting, and electronic services) stay at or below €10,000 (excluding VAT) in both the current and the previous calendar year, you can charge Spanish VAT on those sales.

This rule only applies if your business is established only in mainland Spain or the Balearic Islands and your goods are shipped from there.

No application or approval is needed—simply set up your tax settings in Shopify admin.

You can also choose to apply the customer's country rate from the first euro, but that choice binds you for two calendar years.

To charge Spanish VAT on eligible cross-border B2C sales:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Tax regions section, click European Union.
3. In the Collect VAT cross-border section, click Collect VAT.
4. In the Collect across the EU window, select Collect using your home country registration.
5. Select your Country of registration and enter your VAT number. Leave this field blank if you've applied for a VAT number but don't have one yet. You can update it later.
6. Click Collect VAT to save your changes.

If your combined cross-border B2C sales exceed €10,000 (excluding VAT) in the current or the previous calendar year, you charge the VAT rate of the country you're shipping to.

As a result, customers in different EU countries are charged different VAT rates, depending on the destination country and the type of product sold.

Registering for VAT in each EU member state can become administratively burdensome. Instead, you can use the One-Stop Shop (OSS) Union scheme: you still charge VAT at the rate of the customer's country, but you report the VAT on your eligible cross-border B2C sales through a single OSS return in Spain.

OSS doesn't replace your domestic VAT return or local registrations where they're required.

Shopify calculates VAT based on the tax settings and registrations you've configured.

To set VAT rates for the OSS scheme and charge your customers' shipping-country VAT rate on eligible cross-border B2C sales:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Tax regions section, click European Union.
3. In the Collect VAT cross-border section, click Collect VAT.
4. In the Collect across the EU window, select Collect using a One-Stop Shop (OSS) registration.
5. Select your Country of OSS registration and enter your VAT number. Leave this field blank if you've applied for a VAT number but don't have one yet. You can update it later.
6. Click Collect VAT to save your changes.

Now, your customers' shipping country VAT rates automatically apply to your eligible cross-border B2C sales.

You need a local VAT registration in another EU country if you make taxable sales there that OSS doesn't cover, for example, if you store stock in that country and ship to customers from there.

In that case, you can no longer use the €10,000 threshold for distance sales shipped from that country.

If that's your situation, add the local VAT registration number to your tax settings, so Shopify applies the correct VAT rates based on your registrations.

To add a local VAT registration number:

1. In your Shopify admin, go to Settings → Taxes and duties.
2. In the Tax regions section, click European Union.
3. In the Collect VAT in an EU country section, click Collect in another location if you already have a registration.
4. Select the Country and enter your VAT number. Leave this field blank if you've applied for a VAT number but don't have one yet. You can update it later.
5. Click Collect VAT to save your changes.

The country must be part of one of your shipping zones before you can add it as a tax region. If you can’t select it, create a shipping zone first:

1. In your Shopify admin, go to Settings → Shipping and delivery.
2. In the Shipping profiles section, click the profile you want to add the zone to (for example, General profile).
3. In the Shipping zones section, click + Zone.
4. Name the zone, add the country (or countries) you’re VAT-registered in using the search bar, and click Done.
5. Add shipping rates to make the zone available.
6. Click Save to apply the changes.

Special VAT rules apply when selling digital services from Spain to customers in other EU countries.

Electronically supplied services include downloadable music, e-books, digital photographs, and automated online courses.

Not every service delivered over the internet qualifies—for example, a live online class taught by a person may be treated differently.

For B2C sales, digital services count toward the same €10,000 EU threshold as your distance sales of goods. Within the threshold, you can keep charging Spanish VAT.

Once you exceed it, you charge the VAT rate of the customer's country and can report it through the same OSS Union scheme.

If you sell digital services to businesses with a valid EU VAT number, the customer accounts for the VAT under the reverse charge.

Goods exported from mainland Spain or the Balearic Islands to destinations outside the EU, whether B2B or B2C, are exempt from Spanish VAT with the right to deduct input VAT, as long as the export conditions are met.

You must keep evidence that the goods have left the EU, such as customs export records.

For official guidance, see the Spanish Tax Agency (agenciatributaria.gob.es) website. For personalized advice based on your specific business situation, consider consulting a qualified Spanish tax professional who specializes in VAT and ecommerce.

Once you set your tax rates correctly in your store, Sufio will automatically create valid invoices with an exact breakdown of the charged VAT.

Invoices can be created in multiple languages and include all the necessary details to make them compliant with invoicing legislation in the EU.

Issuing invoices with the correct tax breakdown is crucial for your bookkeeping and tax purposes.

If you are selling to businesses (B2B), Sufio invoices include all the required information, as well as the VAT registration number (NIF or Número de Identificación Fiscal) of your online store and your business customers.