Understanding VAT Rates in Spain: A Complete Breakdown of Tax Levels
Spain operates four different VAT (IVA) rates, each applying to specific categories of goods and services. Here's a comprehensive breakdown:
General VAT Rate (21%)
- Clothing and footwear
- Electronics and communications
- Furniture and home appliances
- Alcoholic beverages and tobacco
- Professional sports events
- Beauty and cosmetic services
- Fuel and natural gas
- New and used vehicles
- DIY products
- Intermediate goods for manufacturing
Nine illustrated budget planning squares
Reduced VAT Rate (10%)
- Food production materials
- Hospitality and catering services
- Cultural activities and entertainment
- Public transportation
- Electricity
- Agricultural products
- Basic healthcare items
- Eyewear and related products
- Residential properties
- Funeral services
Super-reduced VAT Rate (4%)
- Basic food items (bread, eggs, milk, fruits, vegetables)
- Books and newspapers
- Medical prescriptions
- Prosthetics and mobility aids
- Public housing projects
- Care services for dependent adults
VAT-exempt Items (0%)
- Medical supplies (masks, gloves, thermometers)
- Postal services
- Financial products and insurance
- Educational services
- Healthcare services
- Primary residence rentals
Hand holding blue business card
These rates are aligned with European Union VAT regulations while maintaining Spain's specific economic and social priorities. The system is designed to make essential items more affordable while generating revenue from luxury and non-essential goods and services.
Related Articles
Essential Guide to Road Tax (IVTM) in Spain: Requirements and Payments
