By Royal Decree-Law 20/2012, of the 13th of July, on measures to guarantee fiscal stability and to promote competitiveness, the rates for the Value Added Tax (VAT) were amended in Spain. We summarize the implications of this modification.
New types of VAT
| Type | Current % | % From 01.09.2012 |
| Standard | 18% | 21% |
| Reduced | 8% | 10% |
| Super Reduced | 4% | 4% |
In addition to the increase in applicable rates, from the 1st of September 2012, some services until August 31 were taxed at a reduced rate, from the 1st of September, they will be taxed at the standard rate. Specifically: tickets to theatres, circuses, shows, amusement parks, zoos, movie theatres, and access to private sports centres, health and care are not exempt from the VAT; neither are hair salons or the sale of art objects.
Implementation of the Increase
To determine the rate applicable, it should be taken into account the date of the accrual transaction, ie the date on which it is understood that the transaction will take place. The accrual rules for major transactions that are subject to the VAT are the following:
General Rules: accrual date
- Establishment of Domestic Goods: About entrepreneurs established in Spain.
- Personal Property: The accrual occurs with the provision of goods or property (with its establishment)
- Real Estate: The accrual occurs at the time of the formalization of the public deed (unless this said Public Deed indicates a different date, which later must be proven).
- Supply of Domestic Services:
The date of accrual is one in which the service is effective immediately, processing or effectuated.
- Intra-Community Acquisition of goods: The accrual occurs on the date on which the goods were delivered
- Acquisition of services within the community or from third countries: The accrual occurs on the date on which the services are received
- Imports: Within imports, the accrual will occur simultaneously with the accrual fees established by the customs legislation.
Special Rules: When the date of accrual cannot be determined
- Successive Tract Services: This refers to those services that are performed continuously in time. The VAT rate that may be applied shall be those in force when the payment of the price becomes due.
- Advance Payments: VAT is payable at the moment in which the collection occurs.
Rules for amendment in invoices
The amendments, as a rule, apply the rate of the VAT which was applied to the initial operation.
For additional information regarding the types of VAT in Spain,
