Most professional services carry 21%; the 10% and 4% rates are reserved for the goods and services listed in article 91 of the Spanish VAT law (Ley 37/1992), such as much of the food supply, books or medicines. When in doubt, check the law or ask an advisor before applying a reduced rate: a rate mistake is on you, not on your client.
The rate depends on the transaction, not on who carries it out: one business can sell products at different rates, in which case each line carries its own and the invoice shows the base and the VAT of each rate separately. Some transactions are exempt or outside the scope of VAT and carry none, and under reverse charge the invoice shows no VAT even though the transaction is taxed.
The term is used in other taxes too: IRPF applies a progressive scale by brackets, and corporate tax has a general rate with special rates for some taxpayers. In kontora you choose the VAT rate on each invoice line, and the breakdown by rate reaches the quarterly return draft already done.
Guides that use this term
- Renting out a property in Spain as a non-resident: what you pay and when you declare it
- Modelo 210: the Spanish non-resident tax, explained in full
Related terms
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