Iva On Food In Spain?
Disclaimer: This article was accurate at the time of publishing. To obtain the most up-to-date information, please get in touch with our local experts. View more information on other countries , or find out more about VAT. Spain VAT Spanish VAT registrations and VAT returns are based on legislation which is derived from the EU, which sets the common VAT compliance rules across the whole EU.
The Spanish VAT rate is set by the Spanish government, and is currently 21%. The European VAT Directives lay out the rules for VAT invoices, computations and most of the details for the implementation of VAT across EU member states.
Spain is obliged to incorporate the VAT Directive into its tax code. Spain VAT law The Spanish VAT law is contained within the General Tax Code. It is administered by the Agencia de Administración Tributaria (the Spanish Revenue or AEAT). Spanish VAT registration Foreign companies may register in Spain for VAT without the need to form a local company; this is known as non-resident VAT trading. Common scenarios which require a Spanish VAT registration include:
- importing goods into Spain
- organising live events, conferences, etc, in Spain
- holding goods in a warehouse in Spain as stock for resale
- ‘supply and install’ services over 12 months
- selling goods from Spain to other EU countries
- distance selling to private individuals in Spain, e. internet retailing.
Registering for Spanish VAT generally takes one to two weeks, although this can vary. Spain VAT compliance There are detailed rules controlling the recording and processing of Spanish transactions. These include guidelines on:
- Spanish invoice requirements
- foreign currency reporting and translation
- correcting errors from prior returns
- credit notes and corrections
- what accounting records must be maintained.
Spain VAT rates The standard VAT rate in Spain is 21%; thisrose from 18% in September 2012. There is a reduced rate of 10% for passenger transport, hotel and restaurant services, and other goods and services. There is also a 4% VAT rate for food and drink, goods from chemists, construction work and some newspapers. There are many variations to the rates above, including exempt taxable supplies.
There is no VAT threshold in Spain for the registration of non-resident traders; a VAT number must be in place before the commencement of taxable supplies. There are strict rules on the situations where a registration is permitted.
Spain VAT returns Companies with a Spanish VAT number must submit periodic returns detailing all taxable supplies (sales) and inputs (costs). Returns are generally submitted quarterly in Spain, and are due by the 20th of the month following the reporting period.
There is also a requirement to submit an annual return in Spain by the end of January the following year. Spain Intrastat and EC sales lists In addition to VAT returns in Spain, companies may be required to submit additional statistical information.
The Spanish Intrastat, which lists sales (dispatches) and purchases (acquisitions) within the EU region, must be filed monthly once the annual threshold (EUR 250,000 for arrivals and dispatches respectively) is exceeded. Spanish EC sales lists, or recapitulative statement, details customers and the values of sales made to them.
It should be submitted on a quarterly basis, and there is no threshold for reporting. Spain VAT refunds If a foreign company is providing taxable supplies in Spain but is unable to obtain a Spanish VAT number, or is incurring Spanish VAT on local goods or services, then Spanish VAT may be recovered through a VAT reclaim.
VAT refund applications are made through the tax authorities of the applicant’s home country. View more information on other countries , or find out more about VAT .
How much is IVA on food in Spain?
In Spain, the percentage of VAT you pay depends on the kind of product or service you’re acquiring. While the general VAT rate is 21%, the reduced VAT rate is 10%, and the super-reduced VAT rate is 4%. VAT rates in Spain.
| Type of VAT | VAT rate | Applicable goods |
|---|---|---|
| Reduced VAT | 10% | Cultural activities, transport and electricity |
.
Is there VAT on food in Spain?
What is the VAT tax rate in Spain? – The VAT tax rate in Spain is 21% , with reduced rates of 4% and 10%. The 10% rate applies to certain goods and services, such as the purchase of newly built properties, hotels and restaurants, health products, and entertainment and sports activities.
- The 4% rate applies to goods considered as basic necessities, such as certain food and reading material (newspapers, magazines, books);
- For further details about the reduced rates, see this table , published when Spain raised the VAT tax rates in 2012;
In addition to the general regime, there are special regimes with other VAT rules, such as for travel agencies, antiques, and agricultural and livestock production. Some professional activities are exempt from VAT , such as private classes, medical services by registered professionals recognized in Spain (doctors, dentists, psychiatrists, speech therapists, opticians), financial and insurance institutions and agent commissions.
IGIC (Impuesto General Indirecto Canario) : This is the tax in the Canary Islands, in use since 1993. There is no VAT in the Canary Islands, Ceuta or Melilla. The IGIC tax is charged on acquisition of goods and services in the Canary Islands by companies and professionals doing business within the region, as well as on imports of goods to the region.
When a Canarian company or professional does business with mainland Spain it will be considered as an operation without VAT. Since Jan 1, 2020, the standard IGIC rate is back at 7%. IPSI (Impuesto sobre Produccion Servicio e Importacion) : This is the tax in Ceuta and Melilla.
- This tax dates from 1991;
- Since February 13, 2019, the rate is 0,5% for services related to marketing, advertising, and e-commerce;
- Since January 2019, Ceuta has a 0;
- 5% tax rate for the game industry if they have a permanent establishment in Ceuta territory, as described in the regulations regarding IPSI;
Read our pages for information about registering your foreign company in Spain or about registering your Spanish company in the EU VAT Registry (VIES). Links: EU VAT Registry (VIES) Agencia Tributaria Spain’s tax agency FAQs: Does my Spanish company always need to include VAT tax when billing our clients? What is VIES? With an SL, when do I get a refund of the VAT tax I’ve paid? What is a VAT reverse charge? My German company is buying in Spain.
Can we recover VAT tax paid? My French company is selling in Spain. Can we avoid having our Spanish clients pay VAT tax? I operate a shoe company in the USA. We are starting to manufacture our shoes in Spain.
Will the VAT automatically be deducted by the Spanish shoe factory, since we are not located in a country that uses the VAT system? We are a UK company that provides onsite computer server support. We have been asked to undertake this role in Spain. Since we are required to charge VAT locally, we will require a VAT number, right? We are a Swiss company and we are going to open a call center in Barcelona to serve our European (non-Spanish) clients.
How is IVA calculated in Spain?
What is VAT exempt Spain?
VAT-exempt services and activities – The following services and activities are all VAT exempt in Spain:
- Medical and hospital services.
- Dental services.
- Aid services for the handicapped, OAPs etc provided by government bodies or social services agencies.
- Education including the teaching of languages and private classes.
- Services which are complementary to education (ballet, judo etc.
- Sporting services provided by government bodies or social services agencies.
- Admission to museums, expositions etc. organised by government bodies or social services agencies.
- Kindergarten services.
- Social and/or cultural activities.
What are the VAT rates in Spain?
| Spain VAT rates | |
|---|---|
| Rate | Type |
| 21% | Standard |
| 10% | Reduced |
| 4% | Reduced |
.
Is IVA tip or tax?
In Bars and Restaurants – If you see a charge labeled IVA on your final bill, the restaurant has applied Mexico’s 16% value-added tax (IVA stands for ” impuesto al valor agregado “), which goes to the government, not the waitstaff. To show your appreciation for the meal, tip your server around 15%.
How expensive is food in Spain?
How much does a meal cost in Spain? – Having lunch or dinner out in Spain is very cheap. You can find menus for 10 euros (including first, second, drink and dessert). Although for dinner you will not find a menu, for 15-20 euros you can go to a restaurant and enjoy quality food.
What is IVA threshold in Spain?
What are the Spanish VAT registration thresholds? – There is no VAT registration threshold for non-resident companies providing taxable supplies in Spain. There is a €35,000 per annum threshold for foreign companies selling goods to Spanish consumers via the internet. .
How much euros do I need for a week in Spain?
What is the minimum amount required for Spain? – Currently, the minimum amount is 100 euros per person per day, with a minimum of 900 euros or its legal equivalent in foreign currency (with effect from January 1, 2022). Why 100 euros per day? How have they reached this amount? The amount represents in euros 10% of the minimum gross interprofessional salary or its legal equivalent in foreign currency multiplied by the number of days visitors intend to stay in Spain and by the number of people traveling at their expense.
Said amount will, in any case, be a minimum that represents 90% of the gross interprofessional minimum wage in force at any given time or its legal equivalent in foreign currency per person, regardless of the planned length of stay.
So, since the Spanish authorities have set the minimum interprofessional salary at €1,000 euros per month since January 1, 2022, the set minimum amount required for visitors is now 100 Euros per day.
What is the IVA on alcohol in Spain?
General VAT rate – 21% is the standard VAT rate in Spain and this applies be default to most services and products for sale. Tobacco, alcohol, cosmetics and personal hygiene products are also charged at the same rate. Recently, some services that had previously been charged at a reduced rate are not charged at 21%: cinema and theatre tickets, hairdressers, funeral services, gardening etc.