How Spanish VAT (IVA) Works: Rates, Base Imponible, and a Worked Example (2026)

Spain's value-added tax is called IVA (Impuesto sobre el Valor Anadido). It is charged on the sale of goods and services by businesses registered for IVA, collected at each stage of the supply chain, and ultimately borne by the final consumer. Understanding the three rates and the base imponible calculation matters whether you are reading a receipt, preparing an invoice, or working out the real cost of a purchase.

The three Spanish IVA rates (2026)

Base imponible, IVA, and total: the three figures on every invoice

Every Spanish invoice shows three related amounts. The base imponible is the price before IVA, the net value of the goods or service agreed between the parties. The IVA is the tax itself, computed as a percentage of the base imponible. The total (precio con IVA or importe total) is what the buyer actually pays: base imponible plus IVA. Consumer receipts usually show only the total; business invoices must show all three.

Worked example: adding IVA at 21 %

Suppose a service is invoiced at a base imponible of 100 EUR at the general rate of 21 %. The IVA amount is 100 x 0.21 = 21 EUR. The total to pay is 100 + 21 = 121 EUR. The formula is: total = base x (1 + rate/100). At 10 %: total = 100 x 1.10 = 110 EUR. At 4 %: total = 100 x 1.04 = 104 EUR.

Removing IVA from a total: if you see a receipt total of 121 EUR at 21 % and need the base imponible, divide by (1 + rate/100). Base = 121 / 1.21 = 100 EUR. IVA = 121 - 100 = 21 EUR. The calculator on this page performs both conversions instantly for all three rates.

What each rate covers in practice

• 21 % (general): the default rate for anything not listed below. Electronics, clothing, software, financial services where IVA applies, alcohol, petrol, and vehicles all attract 21 %.
• 10 % (reducido): restaurants and cafes (food and drink consumed on the premises), hotels and tourist accommodation, taxi and bus fares, new housing sales and major renovation work on residential buildings, and processed foods not qualifying for the super-reduced rate.
• 4 % (superreducido): staple foods including bread, flour, milk, eggs, fresh fruit, fresh vegetables, and cereals; books, newspapers and magazines; and medicines (both prescription and over-the-counter).

IVA on business invoices

Businesses registered for IVA in Spain must include on every invoice: the tax identification number (NIF), the base imponible for each applicable rate, the rate applied, the IVA amount, and the total. Self-employed workers (autonomos) and companies charge IVA on their sales and reclaim the IVA on their purchases, with the net balance paid to or refunded by the Agencia Tributaria each quarter.