VAT rates in Spain

Under the pressure of the European Union and the International Monetary Funds, VAT rates in Spain are to be increased from 1st September 2012.

In Spain, the Value Added Tax, more commonly known as VAT, is charged directly to the consumer when purchasing new product. There are three different rates of VAT in Spain: the standard rate, reduced rate and super-reduced rate.

1. The standard VAT rate in Spain is 21%

This is the reference rate. This is attributed, in general, to all products and services in Spain. Only a few exceptions are the reduced rate or super reduced.

2. The reduced rate is 10%

It applies in the following cases:

• Certain services (some examples: passenger transport, catering, hotel services, circuses, concerts, libraries, museums, exhibitions, etc.).
• Acquisitions, deliveries and intra-EU imports (which take place within the European Union) for goods (food, water, farm equipment, veterinary products, etc.).
• Are not affected by these restrictions alcoholic beverages, soft drinks, tobacco, and cosmetics.

3. The super-reduced rate is 4%

In Spain, the super-reduced rate of VAT applies to:

• Certain services such as maintenance and adaptation of means of transport for people with disabilities.
• Acquisitions, imports and intra-Community deliveries of goods such as basic food (bread, flour, milk, eggs, fruit, cheese and vegetables), books, newspapers, school supplies or housing.