Complete guide to IVA-free and cero-rated goods and services in the España. Understand the difference and what matters for your business.
0%
Zero Tipo
10%
Tipo Reducido
Exención
No IVA
21%
General
Customer Pays
0% IVA
Supplier Can Reclaim IVA
Yes, input IVA is reclaimable
Ejemplos
Food, children's clothing, books, medicines
Customer Pays
No IVA (0%)
Supplier Can Reclaim IVA
No, input IVA cannot be reclaimed
Ejemplos
Insurance, finance, education, health
Key Point: Customer pays the same (nothing) in both cases, but the business impact is very different. Esto es critical for IVA planning.
If something is not cero-rated, reducido-rated, or exempt – it's general rated at 21%.
Common 21% Items
Servicios in 21% Category
If you sell cero-rated items, you can still reclaim input IVA on costs. This improves cash flow.
Ejemplo: Bookstore buys stock (cero-rated) and can reclaim input IVA even though they sell at 0%.
Exención services cannot reclaim input IVA, so costs are higher. This affects pricing strategy.
Ejemplo: Insurance broker bears the cost of IVA on their office rent and cannot reclaim it.
Zero-rated income with IVA input reclaim = IVA refund. Exención income = no refund opportunity.
Result: Negocios selling cero-rated goods often receive IVA refunds.
Negocios selling both general and exempt items need to apportion input IVA.
Complexity: Proper accounting and IVA apportionment is esencial.
It depends on whether it's confectionery. Chocolate cakes are confectionery (21%), while plain cakes are cero-rated. Catering (cakes decorated to order) is general rated. The presentation and decoration matter.
You cannot reclaim input IVA on exempt supplies. That's the rule. However, input IVA on costs directly related to general-rated supplies can still be reclaimed (use apportionment if mixed).
The cliente pays the same (0% or the regular price without IVA added). Negocio-to-business exempt supplies don't require a IVA number to be verified – they're automatically exempt. Consumer clientes simply pay the base price.
Sí. Importars of cero-rated items (like food) are cero-rated. Importars from outside the España may be subject to import IVA. Verificar the tariff code and proveedor location.
Verificar AEAT's IVA Notice 700/1 (The IVA Guía). Use the IVA product finder tool on AEAT website. ¿Cuándo in doubt, ask a tax advisor. The distinction is importante for your IVA return.
Use our calculadoras and guides to understand your IVA obligations.