Spain Sales Tax VAT

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In 2012, VAT tax in Spain was raised to 21%, with reduced rates of 4% and 10%. The 10% rate applies to certain goods and services, such as purchase of a newly built properties, hotels and restaurants, health products, and entertainment and sports activities.

In 2012, VAT tax in Spain was raised to 21%, with reduced rates of 4% and 10%.

The 10% rate applies to certain goods and services, such as purchase of a newly built properties, hotels and restaurants, health products, and entertainment and sports activities.

The 4% rate applies to goods considered as basic necessities, such as certain food and reading material (newspapers, magazines, books).

In addition to the general regime, there are special regimes with other VAT rules, such as for travel agencies, antiques, and agricultural and livestock production.

Some professional activities are exempt from VAT, such as financial and insurance institutions and agent commissions, as well as doctor and dentist fees.

In the Canary Islands, a special regime called IGIC is applied, with a standard rate of 7%. A special SALES TAX on imports and certain goods in the Canary Islands is also applied. The recent reform introduced a special VAT consolidation regime applicable to corporate groups.

There are various scenarios that would trigger an obligation to register for VAT in Spain. Some of the most common examples are:

  • Importing goods into Spain from outside the European Union
  • Buying and selling goods in Spain (excluding domestic reverse charge)
  • Selling goods from Spain which are delivered to customers outside of Spain (business or private customers)
  • Acquiring goods in Spain from another EU country (Intra-community acquisitions)
  • Holding inventory in Spain for sale, distribution or consignment
  • E-commerce sales of goods to consumers, subject to Distance Selling VAT registration thresholds
  • Organising events in Spain where attendees or delegates must pay admission

If you wish to apply for Sales Tax in Spain, please register in the form below the reasons for needing sales tax VAT in Spain or send us an email.