Spain VAT Rates 2026

Spain VAT Rates at a Glance

What is VAT Called in Spain?

In Spain, value added tax is officially known as Impuesto sobre el Valor Añadido (IVA). It is administered by the Agencia Estatal de Administración Tributaria (AEAT).

Like all EU member states, Spain operates VAT under the EU VAT Directive (2006/112/EC), which sets the framework for standard and reduced rates, exemptions, and the reverse charge mechanism across all 27 EU countries. The Agencia Estatal de Administración Tributaria is responsible for VAT registration, returns, enforcement, and issuing VAT rulings.

Reduced VAT Rate in Spain (10%)

Spain applies a reduced VAT rate of 10% to the following categories of goods and services (subject to the specific conditions of Spain VAT law):

• ✓Food and beverages
• ✓Pharmaceutical products
• ✓Hotel accommodation
• ✓Passenger transport
• ✓Cultural events
• ✓Sports events
• ✓Agricultural products
• ✓Residential property construction

Additionally, Spain applies a super-reduced rate of 4% to:

• ✓Basic foodstuffs (bread, milk, eggs, cheese, fruit, vegetables)
• ✓Medicines and medical devices for disabled
• ✓Books, newspapers and magazines
• ✓Prosthetics and orthopaedic appliances
• ✓Social housing construction

Note: Reduced rate eligibility depends on the specific nature of the supply and how goods or services are classified under Spain VAT law. Always verify classification with a local VAT adviser before applying a reduced rate.

VAT Registration in Spain

Once registered, businesses are issued a Spain VAT number (ES + digits). This number must appear on all invoices and be verified on the EU VIES database before zero-rating intra-EU B2B supplies.

Non-EU businesses are generally required to register for Spain VAT with no registration threshold — the first taxable supply in Spain triggers an immediate registration obligation. Non-established businesses may need to appoint a local fiscal representative depending on the nature and location of their business.

Filing VAT Returns in Spain

VAT returns in Spain must be submitted electronically via the Agencia Estatal de Administración Tributaria portal. Most member states require payment of VAT due simultaneously with the return submission — check whether Spain requires separate payment instructions or if bank debit is automatic.

VAT Invoice Requirements in Spain

To be valid for VAT recovery purposes, Spain VAT invoices must include the following mandatory information (consistent with Article 226 of the EU VAT Directive, plus any additional national requirements):

1. 1Supplier CIF/NIF/VAT number (ES + 9 chars)
2. 2Customer name, address and VAT number (B2B)
3. 3Invoice number and series
4. 4Date of issue and date of supply
5. 5Description of goods/services
6. 6Tax base (base imponible)
7. 7IVA rate and IVA amount (cuota)
8. 8Total amount

Simplified invoices (without all fields above) may be issued where the total amount does not exceed €100 excluding VAT, subject to Spain's national rules on simplified invoicing.

Reverse Charge Mechanism in Spain

Spain applies reverse charge (inversión del sujeto pasivo) to construction services, sales of land between taxable persons, sales of properties where the seller has opted to tax, and B2B services received from abroad.

Under the reverse charge, the recipient of the supply (rather than the supplier) is responsible for declaring and paying VAT. The recipient self-accounts for VAT on their Spain VAT return — declaring both output VAT (as if they had charged it) and input VAT (which they may recover subject to normal rules). The supplier issues an invoice without VAT with a note such as "Reverse charge — Article 196 EU VAT Directive."

EU OSS and Spain

Spanish businesses register for EU OSS through AEAT's Sede Electrónica. Spain was an active promoter of the OSS system and has one of the highest numbers of OSS-registered businesses in the EU.

Under the EU's One Stop Shop (OSS) scheme introduced in July 2021, businesses selling digital services or goods B2C to customers in Spain (and other EU countries) can register in a single EU member state and file a single quarterly return covering all EU consumer sales. OSS avoids the need to register for VAT separately in each of the 27 EU member states where you have customers. The Spain VAT due on your OSS return is paid in your registration country and forwarded to Spain's Agencia Estatal de Administración Tributaria.

Spain VAT: Background & History

Spain implemented IVA in 1986 coinciding with EU accession, replacing the previous cascade tax system. Spain operates one of the EU's most sophisticated real-time VAT reporting systems: the SII (Suministro Inmediato de Información) requires large businesses to upload invoice records within 4 business days of issue. The Canary Islands, Ceuta and Melilla are outside the Spanish IVA system and apply separate tax regimes (IGIC in the Canaries at 7%, IPSI in Ceuta and Melilla).

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