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  1. FAQ
  2. Online Sellers
  3. Physical Goods management and Tax Obligations

What additional reporting is required while selling physical goods and will Xolo assist me?

Last updated: October 25, 2024

When selling physical goods in Spain, additional reporting requirements come into play, and these differ from providing professional services. Some of the key reporting obligations include:

  1. VAT (IVA) Reporting:
    Sellers of physical goods must charge VAT on their sales, file VAT returns, and ensure they are registered for VAT if required. This involves regular reporting of VAT collected on sales and VAT paid on purchases. The frequency of VAT filings (monthly, quarterly, or annually) depends on the volume of sales.
  2. Invoices and Receipts:
    Businesses are required to issue invoices for each sale, which must include specific details such as the VAT rate applied, a breakdown of the total price, and the seller's VAT identification number.
  3. Intrastat Reporting (if applicable):
    If you sell goods to or purchase goods from other EU countries, you may need to file Intrastat declarations if the value of the goods crosses a certain threshold, typically over €400.000 annually.
  4. Customs Declarations (for international sales):
    If you sell goods outside the EU, you'll need to complete customs declarations and potentially pay duties and taxes on exports.
  5. Licenses and Permits (for certain goods):
    Depending on the type of goods being sold, specific licenses or permits may be required, such as for food products, medical devices, or goods subject to safety regulations.
  6. E-commerce Specifics:
    If you're selling online, additional requirements like consumer protection laws, return policies, and distance selling rules may apply.

As for Xolo’s assistance, we have recently launched support for managing the sale of physical goods under certain limitations. 

While Xolo can assist with general tax filings and VAT reporting, some specific requirements, such as managing inventory or complying with product-specific regulations, may fall outside our current scope. 

We will provide detailed guidance on what we can support and help you navigate the process of selling physical goods under Spanish regulations.

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