Spain VAT Rate 2026: 21% Standard Rate

How Much Is VAT in Spain?

The standard VAT rate in Spain is 21% in 2026. Other rates: 10% — Food not at 4%, restaurant and hotel services, passenger transport, water, new homes, medical equipment; 4% — Bread, milk, eggs, cheese, fruit, vegetables, cereals, olive oil, books, newspapers, medicines, sanitary products, social housing; 0% — Exports and intra-EU B2B supplies. Locally the tax is called Impuesto sobre el Valor Añadido (IVA). Among the 27 EU member states, standard VAT ranges from 17% in Luxembourg to 27% in Hungary.

How to calculate Spain VAT

To add 21% VAT to a net (tax-exclusive) price, multiply it by 1.21. To remove VAT from a gross (tax-inclusive) price, divide it by 1.21.

• Add VAT: EUR 100 net × 1.21 = EUR 121 gross (that is EUR 21 of VAT)
• Remove VAT: EUR 121 gross ÷ 1.21 = EUR 100 net (that is EUR 21 of VAT)

Use the Spain VAT calculator above for any amount, or compare Spain with every other country in our VAT rates by country table.

Current VAT Rates (2026)

Key VAT milestones

• 2026: Temporary cut to 10% on energy and fuels from March to mid-2026 under RDL 7/2026
• 2026: Royal Decree 238/2026 set up mandatory B2B e-invoicing, to be phased in from 2027
• 2025: Basic foods returned from a temporary 0% to 4%
• 2023: Temporary 0% rate on basic foods introduced
• 2012: Standard rate raised from 18% to 21%
• 1986: IVA introduced on joining the EEC

Is the VAT rate the same everywhere in Spain?

Mainland Spain and the Balearic Islands apply IVA, but the Canary Islands use their own IGIC (standard rate 7%) and Ceuta and Melilla use the IPSI tax; all three are outside the EU VAT area.

Good to know

Under RDL 7/2026, electricity for small contracts, gas, biomass and fuels were temporarily taxed at 10% from March 2026, with the cut due to end by 30 June 2026 at the latest.

Verifactu, the requirement for tamper-proof invoicing software, was postponed to 1 January 2027 for companies and 1 July 2027 for self-employed people.

Spain does not offer a general small-business VAT exemption; most small traders use the simplified or equivalence-surcharge regimes.

Zero-rated supplies (0%)

VAT is charged at 0%, but the seller can still recover input VAT on related costs:

• Exports of goods outside the EU
• Intra-EU B2B supplies of goods to VAT-registered customers
• International transport of goods and passengers

VAT-exempt supplies

No VAT is charged, and the seller generally cannot recover input VAT on related costs:

• Financial and insurance services
• Medical and healthcare services
• Education and vocational training
• Residential letting
• Second and later sales of buildings (transfer tax applies)

Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with Agencia Estatal de Administración Tributaria (AEAT) before relying on them.

Cross-border rules

Digital services and e-commerce: Foreign sellers of digital services to consumers in Spain charge Spain's VAT rate. EU businesses can declare it through the One-Stop Shop (OSS) once their EU-wide cross-border B2C sales exceed EUR 10,000; non-EU businesses use the non-Union OSS from the first sale.

Tourist VAT refunds: Non-EU visitors can reclaim IVA with no minimum purchase amount, validated through the DIVA electronic system.

For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.

Nearby Countries

What is the current VAT rate in Spain?

The standard VAT rate in Spain is 21% in 2026. Other rates in force: 10% (reduced rate), 4% (super-reduced rate), 0% (zero rate). See the rates table above for exactly what each rate covers.

How do I calculate VAT in Spain?

To add 21% VAT, multiply the net price by 1.21. To remove it from a VAT-inclusive price, divide by 1.21; the difference is the VAT. The calculator at the top of this page does both.

What is the IVA rate on food in Spain?

Basic foods such as bread, milk, eggs, fruit, vegetables and olive oil are taxed at 4%, while most other foods and restaurant meals are taxed at 10%. Alcohol is 21%.

Is there VAT in the Canary Islands?

No, the Canary Islands are outside the EU VAT area and use IGIC, with a standard rate of 7%. Ceuta and Melilla use a separate tax called IPSI.

Does Spain have a VAT registration threshold?

No. Businesses must register for IVA before making their first taxable supply, and there is no general small-business exemption.

Where these figures come from

• AEAT - Real Decreto-ley 7/2026
• BOE - Real Decreto 238/2026 (B2B e-invoicing)
• VATupdate - Spain comprehensive VAT guide 2026
• Agencia Tributaria