VAT in Spain: Rates, Rules & How to Calculate IVA
Spain applies three Value Added Tax (IVA) rates. The standard rate is 21%, applicable to most goods and services including electronics, clothing, and professional services. The reduced rate of 10% covers food products, water supply, hotel accommodation, restaurant services, and passenger transport. The super-reduced rate of 4% applies to essential goods such as bread, milk, eggs, fruit, vegetables, books, newspapers, medicines, and wheelchairs.
Spanish VAT is administered by the Agencia Tributaria (AEAT). Businesses must register for IVA if their annual turnover exceeds thresholds set by law, though in practice most B2B and B2C transactions require VAT registration from the first sale. VAT returns (Modelo 303) are filed quarterly, and an annual summary (Modelo 390) is required. The Canary Islands, Ceuta, and Melilla have their own indirect tax systems (IGIC and IPSI) and are excluded from the mainland IVA regime.
For cross-border transactions within the EU, Spain follows the One Stop Shop (OSS) system. Businesses selling to consumers in other EU countries can register for OSS to simplify VAT compliance. Intra-community supplies of goods between VAT-registered businesses are generally zero-rated, provided the goods physically leave Spain. Use our calculator to instantly compute IVA on any amount using Spain's official rates. For invoice preparation, pair this tool with our invoice calculator or check general percentages with our percentage calculator.