In an increasingly global market, it's common for Spanish freelancers and SMEs to offer digital services—such as online courses, software, design, or consulting—to clients across the European Union. However, this international expansion raises a key question: how should you handle VAT on these sales to private individuals?
The answer is simpler than it seems if you know the rules. Since July 2021, the VAT treatment for these services has changed radically. Here’s everything you need to know in 2026.
The Golden Rule: VAT is Applied in the Customer's Country
When you sell a digital service (considered Telecommunications, Broadcasting, and Electronic services, or TBE) to a private individual (B2C) in another EU country, you no longer apply the Spanish VAT rate of 21%. Instead, you must apply the VAT rate of your customer's country of residence.
For example, if you sell an online course for €100 to a customer in Germany, you must apply the German VAT rate of 19%, not the Spanish 21%. This means you need to be aware of the VAT rates in every country you sell to.
There is an exception: if your total sales of digital services and distance goods to individuals across the entire EU (excluding Spain) do not exceed €10,000 per year, you can choose to continue applying Spanish VAT. However, once you cross this threshold, you are required to pay tax at the destination.
The Solution: The One-Stop Shop (OSS)
To prevent you from having to register for VAT in every country where you have a customer, the EU created the One-Stop Shop (OSS) system. This mechanism allows you to centralize all your intra-community VAT declarations and payments through the Spanish Tax Agency (AEAT).
Its operation is straightforward:
1. You register for the OSS scheme in Spain using Form 035.
2. On your invoices to European individuals, you apply their country's VAT rate.
3. Quarterly, you file Form 369, detailing the revenue and VAT collected for each member state.
4. You make a single payment to the AEAT for the total VAT amount.
5. The AEAT then handles the distribution of the corresponding funds to each member state.
Invoicing and the Arrival of VeriFactu
It is crucial that your invoices, even those for European customers, comply with Spanish invoicing regulations. This is where the imminent mandatory adoption of verifiable invoicing systems comes into play.
Starting July 1, 2027, all freelancers and micro-SMEs must issue their invoices using software that meets the requirements of the VeriFactu system. This means programs like Word or Excel will no longer be valid for invoicing. Adapting to this regulation is not just an obligation but an opportunity to automate processes like applying different VAT rates. If you want to better understand what this change entails, you can check our complete [What is VeriFactu? Guide for Freelancers in Spain](/en/what-is-verifactu-spain).
Using compliant invoicing software, like Fakturia, not only ensures you comply with VeriFactu but also greatly simplifies the management of intra-community VAT by automatically calculating the correct rates and preparing the information for Form 369. Choosing the right tool is key, and we recommend you learn about [The Best VeriFactu Software for Freelancers: Comparison](/en/software-verifactu-freelancers) to make the best decision.
In summary, selling digital services in the EU requires applying the customer's country's VAT and declaring it through the One-Stop Shop (Form 369). Getting ahead of the VeriFactu regulation with a suitable software will save you time and ensure you meet all your tax obligations stress-free.