VAT calculator: add or remove IVA from a price

How VAT is calculated: adding it and removing it

To add VAT to a net amount you multiply by one plus the rate: a net amount of 100 euros at 21 % is 100 × 1.21 = 121 euros. The VAT amount is the difference, 21 euros.

To remove VAT from a final price you divide by that same number: 121 ÷ 1.21 = 100 euros net, and the VAT amount is again 21. The usual mistake is subtracting 21 % from the total (121 minus 21 % is 95.59, not 100), because the percentage was applied to the net amount and not to the total.

With the other rates the mechanism is the same: 1.10 for the reduced rate and 1.04 for the super-reduced rate. The calculator rounds the VAT amount to two decimals, which is how it must appear on an invoice.

Spanish VAT rates: 21, 10 and 4 per cent

The VAT Act sets a general rate of 21 %, which applies by default, and two lower rates for closed lists of goods and services (articles 90 and 91 of Act 37/1992).

Reduced, 10 %: among others, most foodstuffs, water, hotels and catering, passenger transport, housing and certain renovation works, tickets to cultural shows and waste collection services.
Super-reduced, 4 %: bread, flour, milk, cheese, eggs, fruit, vegetables, pulses and cereals, books, newspapers and magazines, medicines for human use, prostheses and vehicles for people with reduced mobility, and special-regime officially protected housing.

The lists change from time to time by law, so for a specific product it is worth checking the current article 91 or any binding ruling that exists. If you provide professional services (design, programming, consulting, non-regulated training) your rate is almost always the general one.

The recargo de equivalencia: what it is and how much it adds

The recargo de equivalencia (equivalence surcharge) is a mandatory special regime for retail traders who are natural persons (and some co-ownerships) and sell what they buy without transforming it. Instead of filing the modelo 303, they pay extra VAT to their suppliers and that settles their position.

The surcharge goes on the supplier's invoice next to the VAT, with these percentages from article 161 of the VAT Act: 5.2 % when the rate is the general one, 1.4 % with the reduced rate and 0.5 % with the super-reduced rate. A purchase of 1,000 euros at 21 % costs the retailer 1,000 + 210 of VAT + 52 of surcharge: 1,262 euros. Tick the box in the calculator to see that breakdown.

If you are under the recargo de equivalencia you do not deduct that VAT or file the 303 for those sales, but you are still subject to personal income tax (IRPF; modelo 130 if you are taxed under direct estimation) and must issue an invoice when the customer asks for one.

VAT on the invoice and in the modelo 303

On a full invoice the taxable base, the rate applied and the VAT amount must appear separately; showing only the total is not enough. If you apply several rates on the same invoice, each one carries its own base and its own amount. We explain it in the guide to your first invoice.

The VAT you charge your customers is output VAT (IVA repercutido) and the VAT you pay on your purchases is input VAT (IVA soportado). Each quarter you declare the difference in the modelo 303: if you have charged more VAT than you have paid, you pay in; if not, the balance is carried forward. To estimate that result with your quarter's figures there is the modelo 303 estimator.

Some operations carry no VAT on the invoice even though they are sales: exports, many deliveries to companies in other EU countries (which go on the modelo 349) or exempt services such as regulated education and healthcare. In those cases the calculator is no use, because there is no VAT amount to calculate.

Frequently asked questions

How do I remove VAT from a price?

Divide the price with VAT by 1.21 if the rate is 21 %, by 1.10 if it is 10 % or by 1.04 if it is 4 %. The result is the net amount; the VAT is the difference between the price and the net amount. Do not subtract the percentage from the total: that gives a lower net amount than the real one.

How much is the VAT on 100 euros?

At the general rate it is 21 euros, and the total with VAT is 121 euros. At 10 % the VAT is 10 euros and at 4 % it is 4 euros. If the 100 euros already include VAT at 21 %, the net amount is 82.64 euros and the VAT 17.36.

Which VAT rate do I apply as a self-employed service provider?

Almost always the general 21 %: consulting, design, programming, marketing, translation or non-regulated training go at the general rate. The reduced rates are closed lists in the law and most professional services are not on them.

Who pays the recargo de equivalencia?

The retail trader, a natural person under that regime, pays it to their supplier, on the purchase invoice, together with the VAT. They charge their customers normal VAT and do not file the modelo 303 for those sales. The surcharge is 5.2 %, 1.4 % or 0.5 % depending on the product's VAT rate.

Does the calculator work for invoices to customers in other countries?

Only if the operation carries Spanish VAT. Many sales to EU companies and exports outside the EU are invoiced without VAT, and there is no VAT amount to calculate. The guide to invoicing foreign customers explains it.

Why is my invoice total off by one cent?

Because of rounding. The VAT is calculated line by line or on the total net amount, and the two methods can differ by one cent. The law allows rounding the VAT amount to two decimals; pick one method and keep it on all your invoices.

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