In this article, we explain when you must apply the equivalence surcharge to your invoices and what documentation you may request to prove that a customer is not subject to this regime.
- What the equivalence surcharge is
- What you must do as a seller
- How to prove that you do not have to apply it
- Summary
The equivalence surcharge is a special VAT tax regime for Spanish self-employed retailers.
Under this regime, the retailer is not required to declare VAT on the invoices they issue, but they pay an additional VAT surcharge on purchases made from their suppliers.
You can find more information in the official explanation from the Spanish Tax Agency: ¿En qué consiste el régimen especial del recargo de equivalencia?
You must apply the equivalence surcharge to the invoice when selling to a customer who is a retailer subject to this regime.
Although the customer must inform you that they are subject to the regime, the obligation to apply the surcharge is yours as the seller. This means that, if there are signs that the customer is a retailer subject to the regime, you must apply the surcharge unless they prove otherwise.
You may only stop applying the surcharge if the customer provides written and signed confirmation that they are not subject to the equivalence surcharge regime.
This document must be kept during the tax limitation period. We also recommend that you:
- Request and archive the customer’s tax status certificate.
- Keep a copy of the result of the online AEAT query regarding the tax regime applicable to the customer.
This criterion was confirmed by the TEAC resolution of 7-11-2007.
- If you sell to a Spanish retailer subject to the regime: you must apply the equivalence surcharge.
- If the customer is not subject to the regime: they must provide written and signed proof.
- If there are signs that the customer is a retailer: act proactively and apply the surcharge unless the customer documents otherwise.