VAT in Spain 2026
VAT in Spain is called IVA. The standard rate is 21%, but for a foreign company, it's more important to first determine the territory, place of taxation, and who will settle the tax.
This guide covers the entire map: IVA territory, 21%, 10%, 4%, and 0% rates, warehousing, import, reverse charge, OSS, IOSS, and tax refunds. Spanish VAT registration and Spanish VAT returns are covered in separate guides.
VAT in Spain – what to check before your first invoice?
IVA is a consumption tax. A company accounts for output VAT on sales and can deduct input VAT on purchases if it meets the deduction criteria. In international transactions, the order of analysis is more important than the rate itself.
Basic rate
The general IVA rate is 21%. Reduced rates are 10% and 4%, and 0% also applies for certain transactions.
Territory matters
The IVA covers the Iberian Peninsula and the Balearic Islands. The Canary Islands, Ceuta, and Melilla are outside this system.
Taxpayer identification
NIF-IVA is for intra-EU transactions, but not every company with a Spanish NIF is automatically active in VIES.
Reverse charge
Reverse charge is common with non-established suppliers, but it does not work for every B2B transaction.
From our experience
Most problems don't start with an incorrect rate. They start with an incorrect transaction map: the company doesn't allocate sales to the Peninsula, the Balearic Islands, and the Canary Islands, or it looks solely at the customer, ignoring the warehouse, import, and prior movement of its own goods.
Where does the Spanish IVA apply?
According to the AEAT, the Spanish IVA applies to the Peninsula and the Balearic Islands. The Canary Islands, Ceuta, and Melilla are excluded from the territory where this tax applies.
| Area | System | What does this mean in practice? |
|---|---|---|
| Peninsula and Balearic Islands | IVAMadrid, Barcelona, Valencia, Malaga, Mallorca, Ibiza and other areas covered by the IVA territory. | You apply the rules of the Spanish IVA if, according to the place of taxation rules, the transaction is carried out in that territory. |
| Canary Islands | IGICSeparate Indirect Tax; the Canary Islands are outside the EU VAT territory. | Selling to Tenerife or Gran Canaria requires a different analysis than shipping to Madrid or Mallorca. |
| Ceuta and Melilla | IPSISeparate indirect tax system. | These transactions should not be accounted for as normal local sales covered by a Spanish IVA. |
The simplest address test
"Spain" on the order is not sufficient. Please verify the exact postal code and shipping location. Mallorca is covered by IVA, but Tenerife is not. This difference affects invoicing, transport, customs documentation, and reporting.
VAT rates in Spain in 2026
The AEAT confirms that the general IVA rate is 21%, the reduced rates are 10% and 4%, and 0% applies to specific transactions. The settlement currency is the euro.
| Rate | Typical use | Practical note |
|---|---|---|
| 21% | Standard rateMost goods and services, where the regulations do not provide for a reduced rate, 0% or exemption. | Most common when selling from a Spanish warehouse, local services and B2C sales outside of specific preferences. |
| 10% | Reduced rateSelected food products, passenger transport, hotel and catering services and some housing-related services. | The name of the product or industry is not sufficient. The statutory terms of the specific delivery are what counts. |
| 4% | Super-reduced rateNarrower categories, including certain essential products, books, selected medicines, medical devices and sheltered housing. | At this rate, the classification of goods and complete documentation are particularly important. |
| 0% | Specific operationsThe zero rate leaves the activity in the IVA system but does not generate an amount of VAT output. | Don't confuse 0% with exemption, export, IDT, or reverse charge. Each basis has different conditions. |
| Sick leave | Selected activitiesThe regulations provide exemptions for specified supplies and services. | The exemption may limit the right to deduct IVA from related purchases. |
Important Update: Energy in 2026
In March 2026, Spain temporarily reduced the rate from 21% to 10% for certain energy products. The AEAT subsequently confirmed that gas and electricity would return to 21% from June 1, 2026.When selling energy, it's important to check the transaction date, product type, and current regulations.
When is a transaction subject to VAT in Spain?
The Spanish rate only becomes relevant once it has been established that the transaction is subject to an IVA on the Spanish Peninsula or the Balearic Islands. Start with the flow of goods or the type of service, not the company's registered office address.
Establish territory
Separate the Peninsula and the Balearic Islands from the Canary Islands, Ceuta and Melilla.
Trace the goods
Check where the goods are before delivery, where the transport starts and where the shipment ends.
Specify the buyer
The tax treatment for a consumer, a Spanish taxpayer and an entity from another country is different.
Rate the taxpayer
Determine whether the IVA is settled by the supplier, buyer, importer or platform operator.
Just choose your rate
After these arrangements, apply 21%, 10%, 4%, 0%, exemption or reverse charge.
Typical VAT scenarios in Spain
Having no office, employees, or company in Spain doesn't automatically mean having no responsibilities. The physical flow of goods creates the greatest risk.
| Model | What needs to be checked | The most common risks |
|---|---|---|
| Warehouse or fulfillment | Transfer of own goods to Spain, WNT and subsequent local sale. | Billing of all sales exclusively through OSS despite local inventory. |
| Local B2B sales | Status of the buyer, establishment of the parties, type of delivery and possibility of inversión del sujeto pasivo. | Assumption that every B2B invoice can be issued without IVA. |
| B2C Sales | Place of departure of transport, EU threshold, OSS or IOSS and delivery territory. | Confusing sales to the Balearic Islands with sales to the Canary Islands. |
| Import to Spain | Importer, EORI, place of clearance, customs document, import IVA and further sale. | Lack of consistency between severance payment, right of deduction and sales invoice. |
| Delivery with assembly | Place of installation, status of the buyer and who is to settle the tax. | Adoption of the principles of ordinary mail delivery without assembly analysis. |
| Property in Spain | Type of service or rental, location of the property and exceptions to reverse charge. | Automatic transfer of tax to the buyer despite special rules. |
When should you check your VAT registration in Spain?
Registration must be checked before any activity in which the foreign company itself becomes an IVA taxpayer. A universal security threshold should not be assumed for non-residents.
The most common signals are local storage, movement of own goods, ITC, import and further sale, ITC or export from Spain, delivery with assembly and local sales not settled by the buyer.
The Spanish administration specifies that an unincorporated company applies for a NIF through Modelo 036. NIF-IVA and ROI registration have distinct meanings for intra-Community transactions. The full procedure, documents, and representative are described in the VAT Registration in Spain 2026.
Check your registration before:
- sending the stock to the Spanish warehouse,
- first sale from local stock,
- import on your own behalf,
- IDT or export from Spain,
- delivery with assembly,
- B2C sales outside the scope of OSS or IOSS.
Don't wait until the first declaration
The number, invoice details, VIES, and reporting method should be established before the operation begins. Post-actual registration usually requires corrections to the entire document chain.
Reverse charge in Spain: not every B2B transaction
The inversion of the right to payment transfers the obligation to settle the IVA to the buyer. This mechanism is important for unincorporated suppliers, but it requires verification of the specific transaction.
What does a salesperson do?
If the conditions are met, it issues the invoice without the Spanish IVA and marks it as inversión del sujeto pasivo.
What does the buyer do?
The Spanish taxpayer declares the IVA payable and, where he is entitled to do so, deducts the input VAT in parallel.
Where's the catch?
Reverse charge on sales does not remove previous obligations related to import, intra-Community acquisition of own goods or storage.
Exceptions must be checked separately
The AEAT provides exceptions to the reverse charge, including for certain IDTs and exports from Spain, taxable rentals of real estate, and certain situations where the recipient is also not established in the territory of an IVA. See the AEAT's obligated entity rules.
Import of goods and import IVA in Spain
When importing, determine more than just the rate. Check the importer, EORI, customs document, place of clearance, right of deduction, and further sale of the goods after release.
Before check-in, check:
- who is listed as the importer,
- who has an EORI number,
- where the customs debt and import IVA arise,
- whether the customs document will be issued to the correct entity,
- where the goods will go after customs clearance,
- whether further sale requires a Spanish number.
Deferred import IVA
Spain allows for the settlement of import IVAs in the declaration for the period of receipt of the administrative document, but the system is not automatic. It requires meeting certain conditions and prior selection.
Check the official rules for deferring payment of an import IVA.
Taxenlight advises
Import, warehousing, and local sales form a single chain. If each stage is handled by a different team, prepare a common map: importer, goods owner, customs document, warehouse location, sales invoice, and declaration must tell the same story.
VAT declarations in Spain – a short map of obligations
The basic declaration is Modelo 303. Depending on the transaction, Modelo 349, the annual Modelo 390, SII, or Intrastat may be included. This is a summary—fields, due dates, payments, corrections, and nil declarations are covered in a separate guide.
Don't copy terms from another country
The accounting period and reporting set depend on the taxpayer's status and the transaction. Before the first close, establish the calendar and data sources.
VIES, Intrastat, OSS, IOSS and SII
These systems address different issues. None of them is a universal replacement for local IVA analysis.
VIES and NIF-IVA
The number's validity for EU transactions is verified in VIES. The NIF itself does not automatically constitute an entry in the ROI.
Intrastat
Once the relevant thresholds are exceeded, goods flows within the EU may require a separate statistical report.
OSS and IOSS
OSS simplifies selected B2C settlements, while IOSS applies to specific import shipments worth up to €150.
SII
Selected taxpayers submit electronic VAT records to the AEAT. The SII does not replace the basic VAT return.
OSS does not replace the local number at the warehouse
If the goods are already in Spain, the company has moved them to a local warehouse, or is making an IOSS, OSS will not settle these earlier events. See the official AEAT information on OSS and IOSS.
VAT deduction and refund from Spain
The right to deduct depends on the connection of the purchase with a taxable activity, a correct invoice or customs document and the correct recording of the transaction.
Registered taxpayer
Deducts IVA and settles the excess in Spanish returns, according to its period and status.
A company from another EU country
If there is no local registration and meets the conditions, you can use the EU refund procedure linked to Modelo 360.
Non-EU entity
The return is linked to, among other things, Modelo 361, reciprocity and — in certain cases — a representative.
First the right path
If your business carries out activities in Spain that require registration, the non-established entity refund procedure may not be appropriate. The AEAT describes IVA refunds for non-established entrepreneurs.
The most common VAT errors in Spain
The most expensive errors usually result from inconsistencies between logistics, territory, invoicing and reporting.
Territory and Rate
- treating all of Spain as an IVA territory,
- confusing 0% with exemption or reverse charge,
- using the historical energy rate without checking the date.
Registration and Invoicing
- no analysis at your own warehouse,
- confusing NIF with active NIF-IVA,
- reverse charge applied automatically to every B2B transaction.
Import and reporting
- inconsistent importer on documents,
- local sales settled only in OSS,
- lack of reconciliation of the declaration with logistics and customs documents.
VAT in Spain 2026 – key conclusions
The standard IVA rate is 21%, with reduced rates of 10% and 4%, and 0% for certain transactions. For a foreign company, the table of rates alone is not sufficient.
First the territory
Separate the Peninsula and Balearic Islands from the Canary Islands, Ceuta and Melilla.
Then the transaction model
Check the warehouse, goods flow, importer, customer status and reverse charge.
At the end, the rate and reports
Select the rate, invoice, number and set of responsibilities only after a full analysis.
VAT in Spain 2026 – Questions and Answers
Frequently asked questions about IVA rates, territory, reverse charge, NIF-IVA, OSS and import.
The basic IVA rate is 21%. Rates of 10%, 4%, and 0% also apply for certain transactions and exemptions.
The Spanish VAT is called IVA, or Impuesto sobre el Valor Añadido.
No. The Canary Islands are outside the Spanish IVA and apply IGIC. Ceuta and Melilla apply IPSI.
This depends on the model. Registration must be verified for, among other things, local storage, the movement of own goods, imports, intra-Community acquisitions (ICS), intra-Community supply of goods (ICS), and sales not settled by the buyer.
No. It may limit obligations for a specific sale, but does not remove obligations that previously arose in the case of import, intra-Community acquisition of goods or storage of goods.
The NIF-IVA is a number used for intra-Community transactions. It typically includes the ES prefix and the Spanish NIF, and its validity is verified with VIES.
Not always. OSS can simplify selected B2C sales, but it does not replace registration for local warehousing, intra-Community acquisitions, imports, and transactions not covered by OSS.
Yes, Spain provides for a deferral system, but it doesn't apply automatically. Taxpayers must meet the conditions and choose this form of settlement in the appropriate manner.
This text is for informational purposes only and does not replace an individual tax analysis. For VAT in Spain, it's important to check the IVA territory, taxpayer status, place of taxation, transaction model, reverse charge, import, OSS/IOSS, right of deduction, and current reporting obligations.
