Add or remove Spanish IVA at the 21% standard, 10% reduced, or 4% super-reduced rate.
Spain's standard IVA rate is 21%. A 10% reduced rate applies to things like hospitality and some food; a 4% super-reduced rate applies to basic necessities like bread, milk, and books.
Illustrative estimate only, using simplified/rounded 2026 Spanish tax figures (Madrid regional rates as a representative example) — not tax advice. Rates vary by Comunidad Autónoma. Always confirm with the Agencia Tributaria or a licensed tax advisor.
IVA (Impuesto sobre el Valor Añadido) is Spain's VAT, charged at a standard rate of 21% on most goods and services. A reduced rate of 10% covers categories including hospitality services, passenger transport, and some food products, while a "super-reduced" rate of 4% applies to genuine essentials — basic food staples, prescription medicines, and certain books and newspapers among them.
As with VAT across the EU, IVA is collected in stages through the supply chain: registered businesses charge it on sales and reclaim IVA paid on their own business costs, remitting only the net difference to the Agencia Tributaria (Spain's tax authority), so the end consumer ultimately bears the full rate without it compounding at each stage of production.
Spanish law assigns the reduced 10% and super-reduced 4% rates to specific categories considered essential or subject to targeted policy support (basic food, medicines, hospitality, and transport among them), while the 21% standard rate applies by default to most other goods and services.
Mainland Spain and the Balearic Islands use the standard IVA system described here, but the Canary Islands operate a separate, generally lower indirect tax system (IGIC) instead of standard EU VAT, and Ceuta and Melilla have their own distinct local tax regimes.
Most businesses and self-employed workers (autónomos) in mainland Spain must register for and charge IVA regardless of size, unlike some other EU countries that offer a small-business exemption threshold — Spain's standard regime applies broadly, with simplified schemes available for how it is calculated and reported rather than an exemption from charging it.
Generally yes, digital services and most online purchases are subject to IVA, typically charged at the rate applicable to the buyer's location for consumer purchases within the EU under current cross-border VAT rules.