Thursday, 17 November 2022 11:06

What you need to know about the Spanish VAT?

Spain Vat Spain Vat pixabay

Value Added Tax (VAT) is an indirect consumption tax levied on the value added of goods and services. Ultimately paid by the end consumer and billed as a percentage of the price.


What is VAT in Spain in 2022?

The VAT rate in Spain is set by the Spanish government and currently stands at 21%. The European VAT Directive sets out the rules for invoicing, settlement and most of the details for the introduction of VAT in the EU Member States.

Spain will reduce VAT on gas from 21% to 5% from October 2022. The tax structure in Spain is slightly different from the UK, which may result in slightly higher taxes. Everything is taxed in Spain. However, there are several amendments that may be taken into account that may reduce the total tax payable.

Spanish VAT rate.

In Spain VAT rates may vary depending on your country of residence. Since the revision of the VAT law in 2010, there are three types of VAT in Spain. General VAT is the VAT rate that applies to almost all goods and services. Since 2012, the standard tax rate has been set at 21%, previously 18%. Included products include clothing, footwear, automobiles, household appliances, hygiene products, cosmetics, and services such as electricity and the Internet. In 2021, sweetened and sweetened drinks are included in this total price.

Tax cuts in Spain

In Spain Vat reduced rates provide a tax regime for basic necessities or basic consumption products and services. The applicable tax rate is 10% and includes:

  • water (for human or animal nutrition or irrigation)

  • Veterinary drug

  • Medicines, devices and accessories that help with disorders and health conditions, such as eyeglasses, sanitary napkins, personal care products and contraceptives.

  • Human food (minor) or veterinary food.

  • Agricultural, forestry and livestock products such as seeds, fertilizers, pesticides and herbicides

  • Living quarters, including parking spaces and outbuildings.

  • Public transport.

  • Hotel, camping, spa and restaurant services.

  • Street cleaning service.

  • Health care such as ophthalmology, dentistry and hyperthermia.

  • Construction of residential buildings reconstruction and repair work.

  • Rent with option to buy.

From 2018, entertainment and leisure services such as sports, cinema, libraries, theaters, museums, circuses, amusement parks and music concerts are also included in Spain VAT reduced system.

What else are VAT cuts in Spain

The ultra-low Spain VAT rate of 4% applies to basic necessities and essential goods and services.

  • Basic food products (bread, flour, fruits, fruits, vegetables, vegetables, eggs, cheese, milk, legumes, cereals, tubers).

  • medicine.

  • Books, newspapers and magazines without advertising.

  • Transport for people with reduced mobility.

  • Prostheses, orthoses, internal implants.

  • Government subsidized housing.

  • Telecare service, home help, center, home care.