Self-employed workers, after finishing a task or a job, have to justify the payment with a bill. That is why it is important for self-employed to know all the different types of VAT they might have to use in their bills.
Super-reduced VAT – 4%
The lower percentage of VAT is the one that applies to products that are considered staples or essential. This list contains typical grocery shopping items (milk, cheese, eggs, fruit, cereals, vegetables, etc.), vehicles for people with reduced mobility and wheelchairs, music scores, maps, medicines and books and non-advertising publications. Therefore, a company that sells jams or stationary and school supplies will have to indicate in their bills a 4% VAT.
Reduced VAT – 10%
Transport (train, bus, plane, etc.), hotels, restaurants, sports events, medicine for animals, home renovation and rehabilitation, house and parking facility purchase, pharmaceutical products, street cleaning and sewage collecting services are some of the products that have a reduced VAT. If you own a restaurant, for instance, you will have to include a 10% VAT on your bills.
General VAT – 21%
The rest of goods and services —those who are not tax-free— will pay a 21% tax. In this group, we can find products such as tobacco and alcoholic drinks, cosmetic and personal hygiene products, and flowers and plants, and services like event tickets, cinema, theatre, sanitary and dental services, hairdresser and digital or television reception services. A self-employed dentist, for example, will have to include in his bills a 21% VAT.
Do you have any client outside Spain? Remember that these VAT taxes are just for residents in Spain. You do not have to include the VAT if the bill is for a foreigner or a non-resident in Spain.