VAT rate in Spain

Thousands of FBA sellers use Amazon.es, the Spanish Amazon marketplace, to sell their products. Staying VAT compliant, if required, is of course something every seller needs to take care about. But which rates are there, and which rates does apply for me? What is the VAT anyways? This article has the answers.

What VAT in Spain actually is

The VAT, short for value-added tax, is a consumption tax. It is assessed to the value that is added to goods and services. The VAT applies to almost all goods and services bought and sold within the European Union. The aim is to ensure proper and fair taxation within the EU.

As long as it is higher than 15%, all countries can choose their own standard VAT rate. The VAT in Spain is 20%, the following table gives a complete overview on the different VAT rates and for which products they apply.

VAT Spain: all rates at a glance

VAT in Spain of 21% (Standard):

All taxable goods and services that are not listed in the following Spanish VAT rates.

VAT-rate in Spain – 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; cinema tickets; admission to sporting events (amateur sporting events only); treatment of waste and waste water.

Value Added Tax rate of 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.

VAT-rate in Spain of 0% (Zero):

Taxation of come gold coins, ingots and bars; intra-community and international transport by air and by sea.

VAT duties in Spain

Spain, how could it be otherwise, has its own rules and regulations when it comes to VAT. Being registered for VAT in Spain means issuing invoices that include the disclosure details that are outlined in the Spanish Law, proper processing of all credit notes and much more. A tax advisor should be consulted.