- Canary Islands, Ceuta, and Melilla, all of which are considered non-VAT territories, will be deemed to be within the EU Community. The result of this is that services that, under the general rules, are located in such territories and are used in Spain, will not be taxed in Spain.
- VAT rate on sugary beverages from the reduced rate of 10% to the general rate of 21%
- The VAT rate applicable to face masks has been reduced from the 21% general VAT regime to the reduced VAT rate of 4%.
- The zero VAT rate applicable for intra-community deliveries, imports, and acquisitions of prescribed goods necessary to combat the COVID-19 pandemic has been extended to 30 April 2021.
Source BDO
