Spain VAT (IVA) Calculator

Spanish VAT (IVA) 21%: rules and examples

In Spain, VAT goes by the name IVA (Impuesto sobre el Valor Añadido). The general rate sits at 21%. There's a reduced rate of 10% that covers transport, hotels, hospitality and some food, plus a super-reduced 4% for basic food, books, newspapers and medicines. The math is straightforward: con IVA = sin IVA · 1.21, and to go the other way, sin IVA = con IVA / 1.21. So a net price of €100 turns into €121, and the Agencia Tributaria collects that €21. There's also a specific regime called recargo de equivalencia, which tacks a 5.2% surcharge onto the 21% for retailers (minoristas) who sell to end consumers.

Practical applications

A Spanish retailer under the recargo de equivalencia regime pays 21% + 5.2% on purchases but never files a regular IVA return; the wholesaler takes care of that part. Spanish e-commerce stores have to charge 21% on B2C sales (10% for certain items) and issue invoices showing the NIF and a breakdown. Brazilian autónomos billing Spanish clients via reverse charge can send invoices without IVA, provided the buyer holds a valid VAT-EU number in VIES.

FAQ

What is the recargo de equivalencia? It's a special regime aimed at small individual retailers (minoristas) who resell goods without altering them. Their suppliers charge the standard IVA plus a surcharge (5.2% on 21%, 1.4% on 10%, 0.5% on 4%), and in exchange the retailer is off the hook for filing IVA returns.

Are the Canary Islands subject to IVA? No. The Canary Islands, Ceuta and Melilla fall under the IGIC (7% general) and the IPSI respectively, not IVA. Mainland Spain and the Balearic Islands are where the 21/10/4% IVA rates apply.

When does the 4% rate apply? Think basic food (bread, milk, eggs, fruit, vegetables, cereals, cheese), along with books, newspapers, magazines, medicines for human use and vehicles for people with reduced mobility.