Which VAT rate applies in an online store in Spain?
The rate does not depend on the store: it depends on the product and on the shipping destination. Two questions — what you sell and to whom — settle almost every case.
Short answer
- The standard Spanish VAT rate is 21% and applies to most products.
- The 10% reduced rate covers, among others, many foodstuffs and prescription glasses.
- The 4% super-reduced rate applies to books, newspapers, ordinary bread, milk and medicines for human use.
- For sales to consumers in other EU countries, the buyer's national VAT applies once the €10,000 annual threshold is exceeded.
- Sales to EU businesses with a valid VAT number in VIES are invoiced without VAT under the reverse-charge rule.
Which rate applies by destination
Order destination and applicable VAT
| Destination | Buyer | VAT to apply |
|---|---|---|
| Mainland Spain and Balearics | Consumer or business | Spanish VAT (21 / 10 / 4%) |
| Canary Islands, Ceuta and Melilla | Any | Outside the VAT territory: IGIC or IPSI |
| Another EU country | Consumer | Destination-country VAT once you exceed €10,000 |
| Another EU country | Business with a VIES-registered VAT number | No VAT, reverse charge |
| Outside the EU | Any | Exempt export, with customs evidence |
Practical examples
- Example: you sell a novel for €20 to a customer in Valencia. It is a book, so VAT is 4%.
- Example: you sell a lamp for €60 to a consumer in Lisbon and you already passed €10,000. You charge Portuguese VAT.
- Example: you sell office supplies to a French company with a valid VAT number. Invoice without VAT and mention the reverse charge.
Common mistakes
- Charging 21% across the whole catalogue for convenience, books and food included.
- Charging Spanish VAT to the Canary Islands, which are outside the VAT territory.
- Accepting a VAT number without checking it in VIES on the day of the sale.
- Showing prices excluding VAT to consumers: the final price must be visible in full.
How 4shopy helps
- Each product carries its own VAT rate instead of one rate for the entire store.
- The storefront shows consumers the price with tax included.
- The checkout can request the VAT number on business orders and store it with the order.
- Orders export with taxable base and tax amount separated, ready for your accountant.