VAT Spain 2024

IVA, short for “Impuesto sobre el Valor Añadido,” is the equivalent of Value -Added-Tax. VAT has been in force in Spain since 1986, when Spain joined the European Union. The basic VAT rate in Spain is 21% and covers all products and services that are not covered by the reduced rates of 10% and 4% and the zero rate.

VAT Rates in Spain – VAT Amount Spain

As of today, there are four VAT rates in Spain:

• 21% – The standard VAT rate in Spain, covering all products and services not subject to the reduced rates of 10% and 4% or the zero rate.
• 10% – The first reduced VAT rate.
• 4% – The super reduced VAT rate.
• 0% – The zero VAT rate.

VAT has been in effect in Spain since 1986, the year Spain joined the European Union.

VAT in Spain – 10%

• Some groceries
• Water resources
• Certain pharmaceutical products
• Some medical devices for disabled people
• Domestic passenger transport
• Intra-Community and international transport by road, rail and inland waterways
• Restaurant services
• Catering services
• Eating to go
• Some non-alcoholic beverages
• Admission to amateur sports events
• Bars
• Cafés
• Nightclubs
• Cut flowers
• Plants for food production
• Some construction work in new buildings
• Wastewater treatment
• Some social services
• Collection of household waste
• Agricultural supply
• Accommodation in a hotel
• Some social housing
• Some repairs and renovations of private apartments
• Admission to certain cultural events

Super Reduced VAT Rate in Spain – 4%

Spain also has a super reduced VAT rate of 4%, which applies to:

• Certain food items.
• Some pharmaceutical products.
• Some medical devices for disabled persons.
• Certain books.
• Certain newspapers.
• Some magazines.
• Some social housing.
• Certain social services.
• Some home care services.
• Some construction works in new buildings.

Zero VAT Rate in Spain

The zero VAT rate in Spain applies to:

• Intra-community and international transport by air and sea.
• Taxation of certain gold coins and bullion.
• A group of services provided by doctors.
• Health protection products.

Temporary VAT Reduction on Food Products in Spain

Until September 30, 2024, the 0% VAT rate in Spain temporarily includes basic food products like bread, eggs, milk, and vegetables due to the rising cost of living. However, from October 1, 2024, these food products will be subject to a 2% VAT, and the original taxation will be reinstated on January 1, 2025.

When is VAT registration required in Spain?

VAT registration is required in Spain when selling goods and services subject to VAT within the country. This includes:

• Importing goods into Spain (even if they are immediately delivered to another EU country).
• Buying and selling goods in Spain (if the supplier and customers are not Spanish VAT-registered companies – reverse charge).
• Selling goods to Spanish consumers online (subject to the Spanish VAT distance selling threshold).
• Storing goods in a consignment warehouse in Spain.
• Charging entry fees for events or exhibitions in Spain.
• Exceeding Intrastat thresholds.

Registration to obtain a VAT number should occur before starting operations. Failure to do so may result in financial penalties.

VAT identification number in Spain

There are three formats for VAT identification numbers in Spain. Each consists of 9 characters and one or two letters, which appear at the beginning, end, or both the beginning and end of the identification number. The Spanish code for EU VAT is ES.

VAT registration in Spain is done through the local tax office (Administración de la Agencia Estatal de Administración Tributaria – AEAT).

Spanish VAT invoice requirements

VAT invoices in Spain must be issued at the time of delivery for non-taxpayer customers. For VAT taxpayers, they can be issued by the 16th day of the month following the delivery.

Invoices must be kept for four years and include at least the following basic information:

• Issue date and transaction date (if different)
• Unique number
• Supplier’s VAT number
• Full address of the supplier and customer
• Full description of the services or goods supplied
• Quantity details of the goods
• Unit prices
• Details of any discounts given
• Net taxable value of the supply
• Applied VAT rates
• VAT amount broken down by rate
• Total gross invoice amount

For transactions under 400 euros, a simplified version of the invoice is allowed.

When to submit VAT returns in Spain?

In Spain, VAT returns are submitted monthly, quarterly, and annually. Monthly returns are required if sales in the previous year were less than 6 million euros. If sales exceeded 6 million euros, quarterly returns are necessary. Annual returns must be filed by all VAT-registered companies in Spain. If sales to EU countries exceed 10,000 EUR under the OSS system, the VAT must be settled in Spain or through the VAT-OSS system.

Monthly returns are due by the 30th of the following month, quarterly returns by the 20th, and annual returns by January 30th of the following year. The frequency of VAT reporting in Spain depends on the level of income.

Penalties and interest on VAT in Spain

Penalties for VAT non-compliance in Spain range from 20% to 200%. There are also interest penalties for late payments, typically 5% per month, which can increase to 20% after one year.

Spanish tax office

The address of the Spanish tax office (Agencia Estatal de Administración Tributaria) is: Av. de Selgas, 1, 46800 Xàtiva, Valencia, Spain. The website is here. Contact number: +34 91 554 87 70.

Want to register for VAT in Spain? Schedule a consultation, and we’ll take care of the rest!

Intrastat Spain

In Spain, statistical reporting under Intrastat is required when thresholds are exceeded, similar to other EU countries. The thresholds for both imports and exports are 400,000 euros. You can find the applicable rates for other EU countries in our article – Intrastat Thresholds 2024.

VAT in Spain – Summary

In Spain, VAT is charged at a standard rate of 21%. There are also reduced rates of 10% and 4%, and a zero rate. Obtaining a VAT number is crucial when starting a business in Spain. Failure to do so before starting sales and services can result in financial penalties.

To ensure that your application and registration documents are correctly submitted, you can rely on our VAT Compliance specialists. They will handle VAT registration for another EU country and the UK, EU VAT, or VAT OSS, as well as assist with returns and declarations. If you’re interested, schedule a consultation.