Spain VAT guidelines
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| FACTSHEET | |
|---|---|
| Country code | ES |
| Tax name | Impuesto sobre el Valor Añadido(IVA) aka VAT |
| Tax Authority | Agencia Estatal de Administración Trubutaria (AEAT) |
Overview
In Spain, sales taxes are known as value-added tax (VAT) and are levied on most goods and services sold in the country. VAT is a consumption tax, which means that it is paid by the end consumer and is generally included in the price of the goods or services. The current VAT rates in Spain are as follows:
- General rate: 21%
- Reduced rate: 10%
- Super reduced rate: 4%
The general rate applies to most goods and services, including food, clothing, and electronics. The reduced rate applies to certain goods and services, such as books, newspapers, and public transport. The super reduced rate applies to a limited range of goods and services, such as basic food products and certain medical services. Businesses registered for VAT in Spain are required to charge VAT on the goods and services they sell and to collect the tax on behalf of the government. They are also required to file VAT returns on a regular basis and to pay the VAT they have collected to the tax authorities. One of the key features of the Spanish VAT system is the concept of intra-Community supplies, which refers to the supply of goods and services between businesses in different EU member states. Intra-Community supplies are generally exempt from VAT in the country of supply, but the business making the supply is required to pay VAT in its own country. This is intended to prevent double taxation and to promote trade within the EU. Another important aspect of the Spanish VAT system is the option for small businesses to use the simplified VAT scheme. This scheme is available to businesses with annual sales of less than €2 million and allows them to pay a flat-rate percentage of their sales instead of charging and collecting VAT on individual transactions. The flat-rate percentage varies depending on the type of business and the amount of sales.
Frequently Asked Questions
Does Spain have a VAT registration threshold — do small businesses need to register immediately?
Spain has no VAT registration threshold for resident businesses. Any Spanish-established business or autónomo (self-employed) making taxable supplies must register for IVA with AEAT from the moment they begin economic activity — regardless of turnover. A simplified "módulos" regime exists for certain small traders, but it is a filing simplification, not an IVA exemption. [1]
What is the SII and which businesses must use it?
SII (Suministro Inmediato de Información) is Spain's near-real-time VAT reporting system (introduced 2017). Businesses must submit invoice details to AEAT within 4 calendar days of issue/receipt. Mandatory for: (1) large businesses (turnover > €6 million); (2) VAT groups; (3) companies in the monthly refund regime (REDEME). Businesses under SII are exempt from traditional VAT summary forms (Modelo 340). Voluntary opt-in is available. [1]
What is the Recargo de Equivalencia and who is affected?
Recargo de equivalencia is a simplified IVA scheme for Spanish retailers selling goods to end consumers without transformation. Retailers don't submit IVA returns — their suppliers charge an additional surcharge on top of standard IVA: 5.2% additional on 21% IVA; 1.4% on 10% IVA; 0.5% on 4% IVA. Retailers under this regime cannot deduct input IVA. Suppliers must identify whether the buyer is subject to this regime to apply correct rates. [1]
My Spanish customer can't provide their NIF — can I still zero-rate an intra-EU supply?
No. For an intra-EU supply (entrega intracomunitaria) to be zero-rated, the buyer's VAT number must appear on the invoice and must be verifiable on VIES. If a Spanish buyer cannot provide their NIF-IVA (format: ES + NIF/CIF), you must charge standard IVA at the applicable rate — you cannot retrospectively apply zero-rating once the supply is made. Always verify via VIES. [1]
Does IVA or AJD (stamp duty) apply to Spanish real estate transactions?
In Spain, property transactions are subject to either IVA or ITP/AJD (transfer tax/stamp duty) — not both (with limited exceptions). IVA applies to: first transfer of new buildings (10% residential, 21% commercial) and first transfer of urban land. AJD is charged simultaneously when IVA applies (0.5%–2% depending on region). ITP applies to: second+ transfers between private persons (not subject to IVA). [1]
For more details on Spanish tax identifiers, see our Spain Tax ID Guide. To verify a Spanish VAT number, see our Spain VAT verification guide.
