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IVA, short for “Impuesto sobre el Valor Añadido”, is the equivalent of VAT in Poland. VAT has been in effect in Spain since 1986 when Spain joined the European Union. The standard rate of VAT in Spain is 21% and covers all products and services not covered by the reduced rates of 10% and 4% and the zero rate.
IVA, short for “Impuesto sobre el Valor Añadido”, is the equivalent of VAT in Poland. VAT has been in effect in Spain since 1986 when Spain joined the European Union. The standard rate of VAT in Spain is 21% and covers all products and services not covered by the reduced rates of 10% and 4% and the zero rate.
Vat number in Spain
VAT (value-added tax), or value-added tax (PTU), is a tax on the value added, or the increase in value of goods as a result of the production process or the creation of services. VAT is an indirect tax, levied at each successive stage of trade in goods or services. VAT applies to both sellers and buyers of goods and services, since its value is added to the net value of the transaction.
VAT in Spain
VAT has been in effect in Spain since 1986 when Spain joined the European Union. The standard rate of VAT in Spain is 21% and covers all products and services not covered by the reduced rates of 10% and 4% and the zero rate.
The 10% rate of VAT in Spain applies to:
- Certain foodstuffs
- Water supplies
- Certain pharmaceutical products
- Certain medical devices for the disabled
- Domestic passenger transport
- Intra-community and international transport by road, rail and inland waterway
- Restaurant services
- Catering services
- Take-away food
- Certain non-alcoholic beverages
- Admission to amateur sporting events
- Bars
- Cafés
- Nightclubs
- Cut flowers
- Plants for food production
- Some construction work in new buildings
- Sewage treatment
- Some social services
- Household waste collection
- Agricultural supplies
- Hotel accommodation
- Some social housing
- Some repairs and renovations to private housing
- Admission to some cultural events
The Spanish VAT rate of 4% covers:
- Certain food products
- Certain pharmaceutical products
- Some medical devices for disabled people
- Certain books
- Certain newspapers
- Some magazines
- Some social housing
- Some social services
- Some home care services
- Some construction work in new buildings
0 zero VAT rate in Spain applies:
- Intra-Community and international transport by air and sea
- Taxation of certain gold coins and bars
VAT identification number in Spain
There are three formats of VAT identification numbers in Spain. Each of them consists of 9 characters and one or two letters. They appear at the beginning, at the end or at the beginning and at the end of the identification number respectively. Spains code for EU VAT is ES.
Requirements of a Spanish VAT invoice
VAT invoices in Spain must be issued at the time of supply of goods to non-taxpayers. If the customer is a taxpayer, they can be issued up to the 16th of the month that follows the supply. VAT invoices in Spain must be kept for four years.
VAT invoices in Spain must contain at least the following basic information:
- Date of issue and transaction (if different)
- Unique number
- VAT number of the supplier
- Full address of the supplier and customer
- Full description of the services provided or
- Details of the quantity of goods
- Unit prices
- Details of any discounts given
- The net taxable value of the supply
- VAT rates applied
- Amount of VAT broken down by rate
- Total gross invoice amount
If any foreign currency is used, the rates on the invoice must be clearly stated. For transactions less than 400 euros, it is possible to provide a simplified version of the invoice.
