VATupdate

VAT rates: Spain

Quick overview

Standard Rate Other Rates
21% 10% and 4%

The local name for VAT in Spain is Impuesto sobre el Valor Añadido (IVA).

Recently, there have been some developments about Spanish beauty salon professionals protesting for a VAT reduction.  Also, the VAT rate for masks to fight Corona can be reduced from April 2021. Earlier, the Spanish Government had refused to reduce the VAT on electricity.  In the Budget Law 2021 there is a provision to increase the rate for sweetened drinks.  The zero rate was introduced to  COVID-19 vaccines and in vitro diagnostic medical devices applies between 24 December 2020 and 31 December 2022. For more information about (recent) rate change developments in Spain, please click here.

Standard rate: 21%

This is in place since 1 September 2012.  Before that, the standard rate was 18%. This rate applies for all transactions that take place in Spain, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT). Note that for VAT purposes, the country does not include the Canary Islands, Ceuta and Menilla.

Zero rate (0%)

Spain applies various exemptions with a refund of tax paid at preceding stages (zero rates), such as intra-Community and international transport, intra-Community supplies of goods, international transport of passengers, and exports of goods (and related services) to non-EU countries.

Reduced rate 1: 10%

Examples of supplies subject to this rate are:

  • Foodstuffs (if not subject to 4%)
  • Medical products for veterinary uses; napkins, tampons, panty liners, condoms and other non-medical contraception.
  • Medical equipment for disabled persons (if not subject to 4%)
  • Certain transport of passengers
  • Certain admission to cultural services (shows, cinema, theatre)
  • Services provided by performing artists, directors and technicians.
  • Renovation and repairing of private dwellings completed at least 2 years ago.
  • Hotel accommodation
  • Restaurant and catering services
  • Admission to amateur sporting events
  • Collection of domestic waste and street cleaning, other than the supply of such services by bodies referred to in Article 13 of the Directive 2006/112/EC

Reduced rate 2: 4%

Examples of supplies subject to this rate are:

  • Bread; bread-making flours; milk; cheese; eggs; fruits, vegetables, tubers and cereals.
  • Medicinal products for human use, pharmaceutical forms, pharmaceutical compounding products and officinal preparations.
  • Adapted vehicles for persons with restricted mobility; prosthesis, orthosis and internal implants for disabled people; repair services of cars and wheelchairs for disabled people and the services adapting taxis for their use by disabled people.
  • Books, newspapers and magazines not containing only or mainly advertising (not more than 75 percent of their revenue obtained by advertising), as well as ancillary elements supplied jointly with these goods through a flat price are subject to 4%. 4% applies as well to albums, musical scores, maps, and drawing pads, except for electronic goods and devices.
  • Dwellings qualified by the administration for official protection in a special regime or of social promotion, when the supplies are made by their promoters, including garages and annexes located in the same building which are jointly conveyed with such buildings. For these purposes, the number of parking spaces may not exceed two units, leasing with purchase option of dwellings qualified by the administration for official protection in a special regime or of social promotion, including garages and annexes located in the same building which is jointly conveyed with such buildings.
  • Assistance services for the promotion of personal autonomy and care for dependent people, as long as they are provided in concerted places or residences or through a price deriving from a public tender attributed to the providing company or as a consequence of an economic service linked to such services which covers more than 75% of the price in application, in both cases, of the legal provisions.
  • Certain domestic care services

For a description of how the VAT rates are structured in the European Union, please see here.  The European Commission has also made an EU VAT rate database available where you can find the applicable VAT rate by entering the CN/CPA code of the goods respectively services (you can find more information here).

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on 5 April 2021.

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