Consumption/VAT/Sales Tax in Spain

Overview by
Nature of the Tax
Impuesto sobre el Valor Anadido (IVA).
Standard Rate
Reduced Tax Rate
8% for food and non-alcoholic beverages, veterinary drugs, health equipment and products, accommodations, some passenger transport systems, average and low end hotels and restaurants, etc.
4% for essential foodstuff, medicines, cultural goods, cars for physically handicapped, etc.
Exclusion From Taxation
Exports and services connected to exports, financial operations and insurance contracts, real estate leases, medical services and education are exempted from VAT.
Method of Calculation, Declaration and Settlement
The calculation is done on the taxable value of the goods or service. Declaration is compulsory at variable frequencies depending on the size or line of business of the company. The payment is made after deduction of the VAT amount paid by the declarer for his purchases.
Other Consumption Taxes
There are special taxes:
- IIEE: special production tax (alcoholic drinks, hydrocarbons, tobacco, electricity) ;
- IEDMT : special tax on certain means of transport ;
- Special tax on carbon ;
- IVMDH: tax on retail sales of some hydrocarbons.

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Experts Views (1)
  • EU VAT Guide

    With 27 EU Member States, each with their own VAT legislation to consider, VAT can be a time consuming and confusing task for international business.

    Accordance on 24 Jan 2012 related to Consumption/VAT/Sales Tax in Spain

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  • Accordance

    International VAT Compliance,