Taxes in Europe Database v2
Law No 37 of 28 December 1992 on VAT; Royal Decree No 1624 of 29 December 1992 approving the regulation on value-added tax.
The central government and certain autonomous communities that have a share in the revenues obtained by the tax (in the Basque Country and Navarre the tax is collected in pursuance of the central government legislation, except using different tax declaration forms, and part of the revenue accrues to the said autonomous communities).
The Canary Islands, Ceuta & Melilla
Shall be excluded from the simplified procedure:
Entrepreneurs or professionals whose turnover of revenue in the immediately previous year exceeds any of the following amounts:
Flat rate compensation percentage for agriculture and forestry: 12% Flat rate compensation percentage for livestock and fisheries: 10.50%
Supplies of goods and services made by traders or professional persons for consideration, habitually or occasionally, in the course of their business or professional activity.
Intra-Community acquisitions of goods.
The basis of assessment consists of the total value of the consideration for the taxable transactions, including packaging, wrapping, transport, insurance, commissions, taxes and other levies (except for VAT itself), interest for deferred payment, etc., and excluding discounts allowed after the transaction has been carried out, packaging returned, etc.
The taxable amount for imports is obtained by adding to the value for customs purposes:
The amount of VAT paid on the acquisition of goods or services directly linked to the business or professional activity of the taxable person is generally deductible from the amount due in respect of that person's activity.
There are several categories:
Reduced rate of 10 %, applicable to certain goods and services regarded as basic necessities, such as: food for human consumption and animal feedingstuffs; seeds, bulbs and plant cuttings for the obtention of live flower and plants; water; medical equipment; dwellings; air and sea transport of passengers and their luggage; hotel services; private dwelling repair, and works of art.
Extra-low rate of 4 %, applicable to certain basic necessities such as: bread, milk, fruit and vegetables, medicines, subsidised housing.
Spain applies reduced rates lower than the minimum laid down in art. 99.
Spain applies a reduced rate to housing.
Spain applies to the delivery of work under contract the rate applicable to goods obtained after execution of the work under contract (art. 91.tres LIVA):
Spain applies a reduced rate (10%) to the supply of seeds and other materials of live flower and plants, seeds and other materials of a vegetable origin (art. 91.uno.1.8º LIVA).
Quaterly returns: April 20th, July 20th, October 20th, January 30th
Monthly returns: 20th day after each month, except December return, that may be submitted until January 30th.
Quarterly or month returns, with self-assessment. (large firms and exporters must submit monthly returns).
The following special schemes exist, in accordance with Community rules (Articles 281 to 369 of Council Directive 2006/112/EC):
Since 1 January, 2014, there is a new special VAT scheme that may be applied by taxable person with an annual turnover of up to EUR 2 million, in which VAT becomes chargeable solely once the payment is received by the taxable person, in accordance to Articles 66(b) and 167a of Council Directive 2006/112/EC.