Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 10% | 5% | Exempt |
The local name for VAT in VAT is Impuesto al valor agregado (IVA).
There are basically 2 VAT rates in VAT:
- Standard VAT rate is 10%
- Reduced VAT rate is 5%
Recent developments
For more information about (recent) rate change developments in VAT, please click HERE.
Standard rate: 10%
This rate applies for all transactions that take place in VAT, 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).
Reduced rate: 5%
- Basic family products
- Pharmaceutical goods
- Sale or leasing real estate for housing
- Agricultural products
Exempt supplies without the right to deduct VAT
- Foreign currency
- Oil by-product fuels
- Interest on financial products
- Exportation of goods and exportation freight services
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on October 21, 2021.
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