VAT: Rates and exemptions

VAT rates

The standard rate of VAT is 21%.

The current reduced rates are 10%, 4% and 0%.

From 1 October to 31 December 2024, the rates of 7.5 % and 2 % for certain foods are included on a transitional basis.

You can find out which goods and services these rates apply to by clicking on the following link .

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Exempt transactions

The following are exempt:

1. Domestic transactions (limited exemption: you cannot deduct the VAT you pay on purchases related to these exempt transactions):

• healthcare;
• educational activities;
• social welfare assistance;
• cultural activities;
• sporting activities;
• financial transactions and insurance;
• real estate.

For information on social care for people with disabilities, see Institutions, residential centres and home help .

For real-estate exemptions, see the following application: Property grader .

2. Foreign transactions (full exemption: you can deduct the VAT you paid on purchases relating to the following transactions:

• exports (deliveries of goods transported outside the European Union);
• intra-community deliveries of goods to business customers by transport to another Member State.

For information on foreign trade, see the following application: Locator tools (Provision of services / Supplies of goods) .

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Exemptions for small businesses

In Spain there is no exemption threshold (a set annual turnover limit below which VAT is not chargeable).

The special schemes open to sole traders and professionals are:

• the simplified scheme ;
• the special scheme for agriculture, livestock farming and fisheries ;
• and the special retailers’ scheme (recargo de equivalencia).

Follow these links for specific information in English and Spanish on each scheme, relating to questions such as:

• Who the scheme applies to
• What it consists of
• Obligations
• Regulations

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