Enter amount and VAT details
📊 VAT invoice breakdown details
The Value Added Tax (VAT — Impuesto sobre el Valor Añadido or IVA in Spain) is an indirect consumption tax levied on goods and services. For business owners, freelancers, and consumers, knowing how to add VAT to a net price or reverse/desglose VAT from a total price is essential for correct bookkeeping and tax filing.
🔍 VAT Rates in Spain for 2026
Spain uses three primary VAT brackets:
- Standard Rate (21%): The default rate applied to most goods, services, apparel, appliances, vehicles, and professional services.
- Reduced Rate (10%): Applies to general foodstuffs, passenger transport, restaurant and lodging services, new home purchases, and select health products.
- Super-reduced Rate (4%): Reserved for basic necessities like bread, milk, cheese, eggs, fruits, vegetables, books, medicine, and vehicles adapted for disabled persons.
- Zero Rate (0%) / Exempt: Temporary adjustments for basic groceries under government cost-of-living schemes.
📝 Common VAT Calculations
Depending on whether you start from a net price or a total price, VAT is calculated using the following math:
1. Add VAT (Net to Gross)
Starting from the net tax base, multiply by the VAT rate and add the result to find the final shelf price.
- VAT Amount: €100.00 × 0.21 = €21.00
- Total Gross Price: €100.00 + €21.00 = €121.00
2. Reverse/Extract VAT (Gross to Net)
Starting from the total shelf price, divide to isolate the underlying tax base and VAT.
- Net Tax Base: €121.00 ÷ (1 + 0.21) = €100.00
- VAT Amount: €121.00 - €100.00 = €21.00
❓ Frequently Asked Questions (FAQ)
Input VAT (*IVA soportado*) is the VAT you pay on your business purchases. Output VAT (*IVA repercutido*) is the VAT you charge to your clients on your sales invoices. Self-employed workers and corporations periodically pay the difference (Output - Input) to the tax office.
No, the Canary Islands are exempt from EU-level VAT. Instead, they apply a local indirect tax called IGIC (typically 7%). Similarly, the cities of Ceuta and Melilla apply a local tax called IPSI.
Yes, standard invoices must detail the tax base, the VAT rate, and the VAT amount separately. For simplified invoices (receipts), it is sufficient to state "VAT included" along with the percentage.