What Is IVA?

Why it matters

When you register as autónomo in Spain, you become a registered economic operator in the EU's VAT system. That means you need to know whether your services are subject to IVA, at what rate, and what your quarterly reporting obligations are — even if the answer turns out to be "zero IVA charged" because your clients are all outside the EU.

Getting this wrong in either direction is costly: charging IVA when you shouldn't confuses clients; not charging it when you should creates a liability with the AEAT. Your gestor sets this up correctly from the start.

The export-of-services exemption

Spain's IVA law follows the EU VAT Directive on the place of supply. For business-to-business services, the place of supply is where the customer is established — not where the supplier is located. This means:

• If your clients are U.S. businesses, the place of supply is the U.S. — outside Spain and outside the EU
• Your services are treated as exports for IVA purposes
• You invoice without IVA and report the transactions as "export of services" on your Modelo 303
• You still file quarterly returns — the return shows zero IVA collected, and you claim any IVA you paid on deductible business expenses

This is the standard situation for most Digital Nomad Visa holders: remote workers for U.S. employers or U.S.-based freelance clients.

When IVA does apply

• Spanish clients: If you invoice Spanish businesses or individuals for services, those invoices are subject to 21% IVA
• EU clients (B2C): Services to EU individual consumers may be subject to IVA at various rates depending on the country and service type
• Physical goods: If you sell physical products in Spain, standard IVA rules apply

Many Digital Nomad Visa holders have zero Spanish or EU individual clients and never charge IVA. The compliance obligation exists; the tax collected is zero.

Quarterly filing: Modelo 303

All autónomos — whether they charge IVA or not — must file Modelo 303 quarterly with the AEAT. The filing deadlines are the 20th of the month following each quarter (April 20, July 20, October 20, January 20). Your gestor submits this as part of standard quarterly compliance. An annual summary, Modelo 390, is filed in January covering the full prior year.

IVA on your business expenses

As an autónomo, you can reclaim IVA on legitimate business expenses — coworking space, professional software, Spanish phone line, business equipment. Even if you charge zero IVA to clients, the IVA you pay on deductible expenses may generate a refund claim. This is one reason the quarterly Modelo 303 is worth filing properly rather than ignoring.

Common mistakes

• Assuming IVA does not apply at all. Even if you charge zero IVA to clients, you still have quarterly filing obligations and should be tracking IVA on your expenses.
• Not distinguishing B2B from B2C. The export exemption applies cleanly to business-to-business services. Services to U.S. individual consumers are more complex — check with your gestor.
• Skipping the Modelo 303. Non-filing generates automatic penalties from the AEAT regardless of whether IVA was owed. The obligation is to file; the tax due may be zero.