Master Value Added Tax in Spain. From calculating output VAT to the latest updates on the SII system and mandatory quarterly forms for this 2026.
Information based on official sources
Value Added Tax (VAT) is an indirect tax on consumption. Unlike IRPF, which taxes personal income, VAT applies to the delivery of goods and provision of services. As a freelancer or business, your role is not to pay the tax out of your own pocket, but to act as an intermediary collector for the Tax Agency.
This is the VAT you charge your clients on your invoices. This money belongs to the Treasury and you must set it aside for quarterly settlement.
This is the VAT you pay to your suppliers for goods or services necessary for your economic activity. It may be deductible.
The difference (Output - Input) determines if you must pay the Treasury or if you are entitled to a refund or offset.
This is the default percentage applied to most products and services: clothing, footwear, electronics, professional consulting services, tobacco, alcohol, and much more.
Applicable to food in general, passenger transport, hospitality, and tickets for museums or cultural shows.
Reserved for essential items: bread, milk, eggs, fruits, vegetables, books, and medications.
Certain activities such as official education, public health care, and insurance are exempt from applying VAT on their invoices.
Consult specific cases →Use our calculator to break down your invoices. Includes the option for Equivalence Surcharge for retailers and IRPF retention for self-employed professionals.
Note: This calculation is for guidance only. For official filings, consult one of our recommended consultancies.
VAT management requires precision. Failing to file forms on time can lead to penalties of up to 20% of the amount due.
Important: Since 2025, electronic invoicing is mandatory for all B2B relations in Spain.
This is the main form. All freelancers and companies (except special regimes) must file it every quarter to declare collected VAT and deduct paid VAT.
It is an informative declaration that summarizes all operations of the year. It is filed in January alongside the fourth quarter Form 303. Although it does not involve payment, its omission is sanctionable.
Mandatory for large companies (turnover > €6M) and VAT groups. It consists of electronically sending billing records within 4 calendar days to the Electronic Office of the AEAT.
Special for self-employed retailers who sell to the final customer. In this regime, the freelancer pays a slightly higher VAT to their supplier, but in return does not have to file VAT returns to the Treasury or keep record books.
21% VAT
+5.2% Surcharge
10% VAT
+1.4% Surcharge
Applicable to certain activities (small shops, workshops, agriculture). Instead of calculating real VAT, a fixed fee is paid based on indicators or "modules" such as employed staff, contracted electrical power, or the square footage of the premises.
Check if your activity can enter modules →If you buy or sell services to other European Union countries, you can benefit from the reverse charge mechanism. To do this, you must be registered in the ROI (Registry of Intra-community Operators) via Form 036.
The Canary Islands, Ceuta, and Melilla do not apply common VAT. Instead, they use IGIC (Canary Islands) or IPSI (Ceuta and Melilla), with tax rates generally lower than the mainland territory.
Don't let VAT be a headache. Join thousands of freelancers who already manage their taxes intelligently with our downloadable resources and premium advice.
