Calculate VAT

Do you want to calculate the VAT on your invoices quickly? Use our online VAT calculator to get the price including VAT, to subtract VAT from a price including taxes, or even to calculate percentages to apply different tax rates.

What is VAT and how does it work in Spain?

Value Added Tax is a general, indirect tax on consumption that applies to most goods and services in Spain.

It is considered an indirect tax because it is not paid directly by the party who declares it; instead, it is passed on to the end consumer and included in the sale price.

This is how VAT works in Spain:

• The seller collects it and periodically declares it to the Tax Authority via Form 303.
• The consumer pays it when they purchase a product or service.

What products or services are exempt from VAT?

Although VAT applies to most goods and services, there are exceptions where it is not charged. These relate to VAT-exempt activities, which do not include any rate of tax (21%, 10% or 4%) in their prices.

These are the most common products and services that are exempt from VAT in Spain:

• Medical and healthcare services (such as medical consultations, hospitalisation, clinical tests).
• Public and private formal education (secondary schools, universities, approved training).
• Insurance and some financial products (such as loans, mortgages or bank accounts).
• Lease of main residence (except commercial or tourist premises).
• Social services offered by public or non-profit entities.
• Universal postal services provided by Correos.
• Some non-commercial cultural and sports activities.

No VAT is charged in the invoices for these activities, but input VAT cannot be deducted either, which is key for self-employed individuals or companies in these sectors.

Being exempt from VAT does not mean the product is free. It just means VAT is not shown separately or added to the price.

How many VAT rates are there in Spain?

There are three VAT rates in force in Spain:

• General VAT (21%), levied on transactions for purchase of goods and provision of services, unless otherwise provided. It applies by default to almost all products and services, such as clothing, technology, electronics, domestic appliances, and many others.
• Reduced VAT (10%), which applies to goods and services such as food, culture, leisure, tourism, hospitality, health, housing and activities related to agriculture and livestock farming, among others.
• Super-reduced VAT (4%), levied on essential goods such as bread, milk, fruit, books, medicines, newspapers and orthopaedic products.

You can use our online VAT calculator to automatically apply the correct VAT rate.

Who pays VAT and when is it declared?

VAT is paid by the end consumer, as it is included in the price of most products and services. However, the obligation to collect and declare the VAT lies with the business owners and professionals who make the sale.

In Spain, self-employed individuals and companies must declare VAT quarterly via Form 303 of the Tax Authority. This is the official way to calculate whether you must:

• Pay the Tax Authority the difference between output VAT (which you collected) and input VAT (which you pay on your purchases).
• Offset or request a refund if you have paid more than you have collected

Output VAT and input VAT are the two key concepts in the Form 303 declaration.

What is output VAT?

Output VAT is the tax you collect from your customers when you sell a product or provide a service. It is reflected on the invoice and must be paid to the Tax Authority.

Output VAT example

You receive payment of an invoice for €500 + 21% VAT (€105).

This VAT (€105) is output VAT: you collect it, but it is not yours — you must declare it.

What is input VAT?

Input VAT is the tax you pay on your purchases as a professional or company. It is also reflected on the invoices you receive.

Input VAT example

You buy a laptop for €800 + €168 in VAT

This VAT (€168) is input VAT: you can deduct it from your output VAT if it is related to your activity.

What does deductible VAT mean?

Deductible VAT is the input VAT that a professional or company can deduct from the VAT you have charged their customers. It is only deductible if it is related to the economic activity.

What is the difference between the price including and excluding VAT?

• Price excluding VAT: this is the base price of the product.
• Price including VAT: this is the total price the consumer pays after applying the tax.

How do I know whether a price includes VAT?

Unless otherwise stated, the consumer price usually includes VAT. Invoices to companies or self-employed individuals generally show the amount excluding VAT, with VAT shown separately.

Fast VAT calculation table (21%)