Spain — Value-added tax (VAT)
|General VAT Rate||Other Rates||Local Currency|
|21%||10%, 4%||Euro (EUR)|
Spain's general VAT rate is 21%, with other rates including 10% and 4% that can apply to certain transactions. The Value-added tax (VAT) is administered by the Ministry of Finance (http://www.aeat.es) in Madrid.
Visitors to Spain can qualify for a VAT refund on all purchases made for export - learn more about Spain VAT refunds here.
Spain has the special reduced VAT rates on the following items:
10% reduced VAT rate on: foodstuffs; agricultural supplies; water supplies; some private real estate; sports and cultural events; some house repairs
4% reduced VAT rate on: basic foodstuffs; printed materials; some new housing.
Spain is a member of the European Union (EU) Member State trading bloc, which may affect international VAT collection and regulations.
Spain's consumption tax is called the Value-added tax (VAT), locally known as Impuesto sobre el Valor Añadido (IVA), which was introduced in January 1986.
Spain VAT rates for 2020
- 4%, 10%
- Exempt and exempt with credit
Spain VAT number format
Businesses in Spain that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Ministry of Finance, and will follow a certain format. The VAT number format is A – 1 2 3 4 5 6 7 8 or N – 1 2 3 4 5 6 7 C (ES prefix must be added if the taxable person is included in the VAT Information Exchange System [VIES] census).
Spain VAT return periods
Businesses in Spain that are required to collect tax from consumers must file regular tax returns with the Ministry of Finance in Madrid. Spain's VAT return periods are:
Monthly (if turnover exceeded EUR6,010,121 in the preceding year or if the taxable person is included in the monthly VAT refund procedure)
Annual statement (required for all taxable persons)
Spain Value-added tax (VAT) Thresholds
These are the revenue thresholds at which businesses in Spain are required to start collecting and remitting tax.
- Distance selling
- Intra-Community acquisitions
Recovery of VAT by non-established businesses
Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. In Spain, taxation of a non-established business is: Yes (under certain conditions)
Spain VAT Refunds
Spain has a VAT refund program that allows tourists and others to receive a refund of any Spain VAT paid on goods purchased in Spain that are being exported from the country.
The minimum purchase amount needed to claim a VAT refund is €90.16 Euros (which would yield a VAT refund of about €18.9336). SalesTaxHandbook has detailed information about Spain's VAT refund program:Learn More About Spain VAT Refunds
Spain Tax Sources & Citations
- EN: Spain Value Added Tax
- RU: НДС Испания
- CN: 西班牙 增值税
- Spain Ministry of Finance (http://www.aeat.es)
- Ernst & Young global VAT tax study, Spain (updated 2020)
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