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Spain sets the level of its VAT rates. It does follow some broad rules in this area set by the EU (e.g. the standard VAT rate must be above 15%). These VAT rates should be used by providers of taxable services when selling their goods.
The current rates are:
Spain VAT rates | ||
Rate | Type | Which goods or services |
21% | Standard | All other taxable goods and services |
10% | Reduced | Some foodstuffs; water supplies; certain pharmaceutical products; some medical equipment for disabled persons; domestic passenger transport; intra-community and international transport by road, rail and inland waterways; some social housing; some renovation and repair of private dwellings; agricultural supplies; hotel accommodation; restaurants and catering services; some social services; domestic waste collection; some soft drinks; bars, cafes, night clubs and alcoholic beverages sold therein; take away food; cut flowers and plants for food production; some supplies of new buildings; some construction work on new buildings; admission to sporting events (amateur sporting events only); treatment of waste and waste water; admission to certain cultural services |
4% | Reduced | Some foodstuffs; some pharmaceutical products; some medical equipment for the disabled; some books (excluding e-books); certain newspapers and periodicals; some social housing; some social services; some construction work on new buildings; some domestic care services |
0% | Zero | Taxation of some gold coins, ingots and bars; intra-community and international transport by air and sea |
Once registered for Spanish VAT, you will have to start following the local rules in a number of aspects. This includes:
The tax point (time of supply) rules in Spain determine when the VAT is due. For imports, it is the time of importation. For goods, it is considered as the point of transfer of title. Any VAT due should then be declared in the subsequent VAT return. The tax point for Spanish services is when performed, or on an accruals basis as ‘enjoyed’.
Non-EU businesses selling in Spain will need to appoint a fiscal representative alongside completing VAT registration and returns.
Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients.
Avalara offers a Fiscal Representative Service as part of its international VAT and GST Registration and Returns Service.
+44 (0)1273 022400
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