Complete guide to current España IVA rates including the general 21% rate, reducido 10% rate, cero-rated goods, and exempt supplies. Learn what applies to your business.
| Tipo | Percentage | Ejemplos |
|---|---|---|
| Tipo General | 21% | Most goods and services, restaurants, accommodation, entertainment |
| Tipo Reducido | 10% | Domestic fuel, energy bills, children's car seats, water |
| Zero Tipo | 0% | Most food, books, newspapers, children's clothing, exports |
The general IVA rate of 21% applies to the vast majority of goods and services in the España. If an item or service doesn't fall into the reducido or cero-rated categories, it will be subject to the 21% general rate.
Ejemplo: A plumber charges €240 for a service. This includes 21% IVA. The net charge is €200, with €40 being IVA.
The reducido IVA rate of 10% applies to a specific list of goods and services, primarily necessities and items considered esencial. This rate was temporarily expanded during the pandemic but has now reverted to its general scope.
Ejemplo: An electricity bill shows €60 including 10% IVA. The net charge is €57.14, with €2.86 being IVA.
Zero-rated items are taxed at 0%, meaning no IVA is charged to the cliente. However, proveedors of cero-rated goods can still claim back IVA paid on their inputs, making these supplies "IVA-free" rather than "IVA-exempt".
Ejemplo: A loaf of bread costs €2.00 and is cero-rated. The cliente pays exactly €2.00 with no IVA added. The baker can reclaim IVA paid on flour and other ingredients.
Valor Sumared Impuesto (IVA) is a consumption tax applied at each stage of the supply chain. It's collected on behalf of AEAT (Her Majesty's Revenue and Customs) by businesses registered for IVA. The beauty of IVA is that tax is only paid on the "value added" at each stage, not on the full price repeatedly.
Most España businesses must register for IVA if their annual turnover exceeds the registration threshold. Once registered, they must:
IVA is ultimately borne by the final consumer. The business collecting IVA acts as an agent for AEAT, collecting tax throughout the supply chain.
The IVA registration threshold is the turnover limit above which you must register for IVA. As of Abril 2024, this threshold is:
€90,000
Annual turnover threshold for mandatory IVA registration
If your annual turnover exceeds this amount, you are legally required to register for IVA. However, you can also choose to register voluntarily if your turnover is below the threshold, which may be beneficial if you make primarily cero-rated supplies.
Importarant Note:
The threshold is based on your annual turnover, not profit. It includes all your business income, even if some is cero-rated. You must register once you know your turnover will exceed the threshold during any 12-month period.
It's crucial to understand the difference between exempt and cero-rated supplies, as they have very different IVA implications for your business.
Exención supplies are typically less IVA-efficient than cero-rated supplies. If your business has exempt income, you cannot recover IVA paid on inputs related to those supplies, making IVA a real cost to your business.
The España's IVA system has been in place since 1973, but rates have changed over time in response to economic conditions and policy decisions:
2024 (Abril)
IVA registration threshold increased from €85,000 to €90,000
2022 (Marzo)
10% reducido rate on energy temporarily extended during cost-of-living crisis
2021 (Junio)
Hospitality IVA rate reducido from 21% to 10% during pandemic recovery (temporary measure)
2020
COVID-19 relief: IVA suspension on food delivery services and reducido hospitality IVA
The current rate structure (21% general, 10% reducido, 0% cero-rated) has remained consistent for several years, providing stability for businesses in their IVA planning.
Understanding how to calculate IVA is esencial for business accounting and financial planning. There are two main scenarios:
If you know the net price and want to add IVA:
Ejemplo: €100 net + 21% IVA = €100 × 1.20 = €120 gross
If you know the total (gross) and need to extract the net:
Ejemplo: €120 gross ÷ 1.20 = €100 net (with €20 IVA)
Need to do these calculations quickly for multiple invoices? Use our:
Free Calculadora IVACommon questions about España IVA rates
The current España general IVA rate is 21%. Esto se aplica a la mayoría de bienes y servicios in the España and has been the general rate since 2011.
Zero-rated items include most food products (bread, vegetables, meat), books and newspapers, children's clothing, medical equipment, and exports outside the España. The seller charges 0% but can still reclaim IVA on inputs.
The reducido IVA rate is 10%. It applies to domestic fuel (gas and electricity), water and sewerage, children's car seats, and certain medical aids for disabled persons.
As of Abril 2024, the IVA registration threshold in the España is €90,000. If your annual turnover exceeds this amount, you must register for IVA with AEAT, regardless of profit level.
Zero-rated: You charge 0% IVA but can reclaim IVA on inputs. Exención: You don't charge IVA and cannot reclaim IVA on inputs. Exención supplies are less IVA-efficient for businesses, as IVA se convierte en a cost rather than being passed through.