IVA in Spain in 2026: rates, when to charge VAT, OSS and Forms 303, 349, 369

IVA is Spain’s VAT: 21% standard, 10% and 4% reduced. Clients in Spain are always charged, unless the activity is exempt. EU businesses with a valid VAT number are not — they self-account. EU consumers buying online services pay Spanish IVA up to €10,000 a year, then their own country’s rate. Clients outside the EU usually pay none.

Getting this wrong is expensive: under-charged tax is reassessed with interest and penalties, and over-charged IVA eats your margin. Below: the 2026 rates, a “who you sell to → IVA → which return” table, the €10,000 threshold and OSS, reverse charge on Google and Meta ads, importing goods from China, deadlines for forms 303, 390, 349 and 369, IVA refunds, exempt activities and a worked example for an online school with €600,000 turnover.

How IVA works and the 2026 rates

IVA (Impuesto sobre el Valor Añadido) is charged on the price of a transaction, not on profit: the taxable base is the full consideration (article 78 of Law 37/1992 on IVA). You add the tax to your invoices and, in the quarterly return, pay the difference between the IVA you charged and the IVA you paid to suppliers. If the difference is negative, it is carried forward or refunded. IVA is only one part of the overall tax burden — see the overview of taxes in Spain.

The rate is the one in force on the date of the transaction (article 90). The tax office knows your activities from your registration on Modelo 036 — the same form is used to register for IVA and, if needed, for the EU operators register (ROI).

Who you sell to decides the IVA

The key question is not “what is my rate” but “where is my service taxed”. Article 69 of the IVA law answers it, and the answer depends on two things: whether the client is a business or a private person, and where they are located.

Goods follow the same logic. Shipping outside the EU is an exempt export (article 21). A supply to an EU business with a VIES number is exempt (article 25) and goes into Form 349. Parcels to EU consumers are distance sales with the same EU-wide €10,000 threshold and the same OSS.

Two caveats. First, check the client’s number in VIES before you issue the invoice, and for trading with EU businesses you need an ES-prefixed number yourself — how to get one and check someone else’s is covered in the article on the EU VAT number. Second, the use-and-enjoyment rule (article 70.Dos): if a consumer outside the EU buys a service listed in article 69.Dos but actually uses it in Spain, Spanish IVA applies.

A €100 course: what to charge a client in another EU country

In a Spanish entrepreneurs’ chat someone asked: “I sell an online course for €100. Spanish clients get an invoice for €121 with IVA… What amount should I invoice residents of other EU countries?” Some replied “the same”, others “always the buyer’s country”. Each answer is only half right. The correct answer depends on who buys, what format the course is in and how much you have already sold in the EU.

• An EU business with a VIES number — €100, no IVA, with the note “inversión del sujeto pasivo”. The client pays VAT at its own rate; you report the sale on Form 349.
• An EU consumer buying a recorded course on a platform, while your sales to consumers in all other EU countries combined stayed at or below €10,000 in the previous and current year — €121, the same as in Spain.
• The same, but above the threshold (or after opting into OSS) — €100 plus the buyer’s country VAT at that country’s rate. You pay it in Spain on Form 369 and Spain passes it on.
• An EU consumer attending live classes with a teacher — under the current text of Spanish law, €121. More on this format below.
• A client outside the EU — €100 if the course is recorded or the client is a business. Spanish law taxes live classes for consumers outside the EU: €121.

If you sell through a large platform or marketplace, it may handle part of this for you — check your contract to see who is the seller for VAT purposes, you or the platform.

Online course: electronic service or teaching

The format decides both where the service is taxed and whether it can be exempt. The Spanish tax authority (Dirección General de Tributos, DGT) drew the line in rulings V3599-16 and V3801-16:

• Electronic service — recorded courses, downloadable materials, platform access by subscription. Online tutoring does not change this if it is ancillary to the content. Electronic services have no exemption: 21%.
• Teaching — a teacher delivers the class over the internet, which is just the communication channel, even if the teacher uses digital materials.

Teaching is exempt (article 20.Uno.9º) only when given by a public or authorised institution in subjects that belong to an official Spanish curriculum, as determined by the Ministry of Education. A course on marketing, investing or relocation usually does not qualify and is taxed at 21%. Private lessons by individuals in school and university subjects have a separate exemption (article 20.Uno.10º).

Live online events are an open question. Since 1 January 2025 EU Directive 2022/542 places services related to educational and other events that are streamed or otherwise made available virtually in the country where the private customer lives. Article 70 of the Spanish IVA law, in its current wording, does not contain this rule. If your product is webinars and live groups for clients across the EU, have this reviewed by a tax adviser before you launch.

The €10,000 threshold and OSS

The threshold in article 73 is a single EU-wide figure, not per country. It covers, net of VAT, all electronic and telecom services and distance sales of goods to consumers in other EU countries. Both the previous calendar year and the current one count. While the total stays at or below €10,000, you charge Spanish IVA and pay it on Form 303. Once you exceed it in the current year, you charge the buyer’s country VAT from that sale onwards.

You do not have to register in each country. The One-Stop Shop (OSS, régimen de la Unión, articles 163 unvicies onwards) handles it: you register on Form 035 and report all countries in one quarterly return, Form 369, due by the last day of the month after the quarter — 30 April, 31 July, 31 October and 31 January. You pay in Spain and the Spanish tax agency distributes the money. You can also opt into OSS voluntarily before reaching the threshold, but then for at least two calendar years.

For each consumer sale, keep the data used to determine the customer’s country: address, card country, IP address. Without it, it is hard to justify in an audit why a particular country’s rate was applied.

Purchases: when you charge IVA to yourself

Google and Meta ads and other EU services

Google Ads and Meta invoice Spanish businesses from Ireland without IVA. That does not mean there is no tax: under article 84.Uno.2º the buyer accounts for it. You charge yourself 21% on Form 303 and deduct the same amount in the same quarter. With full deduction rights the net cash effect is zero, but both lines must be in the return, and every such purchase goes into Form 349 as an intra-EU acquisition of services. For this the company or autónomo must be in the ROI register. The same reverse charge applies to services from non-EU suppliers, such as US SaaS, but they are not reported on Form 349.

In the same chat, an entrepreneur who changed accountants learned that his Google Ads invoices should have gone into a separate report and wrote about a fine of “€300 each”. The law calculates it differently. If Form 349 is not filed on time, the penalty is €20 per counterparty that should have been included, minimum €300 and maximum €20,000 (article 198 of the General Tax Law); half that if you file late before the tax office asks. If the return was filed but some operations were left out, the penalty is up to 2% of the omitted amount, minimum €500 (article 199.5). So ten Google invoices mean one penalty per return, not ten. More on surcharges and penalties in the article on Spanish tax penalties.

Goods from China and other non-EU countries

Another chat member claimed that “IVA is not paid on deals outside the EU”. For imports that is wrong. Import IVA is paid at customs: the base is the customs value plus duties and transport to the first destination in the EU (article 83), at the same rate as a sale of those goods in Spain. The exemption for low-value parcels (up to €22) was abolished on 1 July 2021. For a business this IVA is not a cost: it is deducted on Form 303. Companies filing 303 monthly can skip paying IVA at customs and include it in the return instead (article 74 of the IVA Regulation, known as deferred import IVA); the option is made in November for the following year.

If you sell imported goods to EU consumers in parcels worth up to €150 (excluding excise goods), you can register for IOSS (régimen de importación, article 163 quinvicies): the buyer’s country VAT is charged at checkout, the parcel clears customs with nothing more to pay, and the tax is paid on a monthly Form 369.

Forms 303, 390, 349 and 369: what and when

Only those whose entire activity is exempt from IVA do not file 303 (article 71 of the Regulation). For an autónomo, IVA comes alongside income tax prepayments — the calendar is in the article on autónomo taxes. Quarterly filings are usually handled by a gestor — what a gestor does and what to check yourself is described separately, and you can hand the filing over to our quarterly IVA support.

IVA refunds and pro rata

If deductible IVA exceeds IVA charged, the difference is carried forward by default, and the remaining balance can be reclaimed in the last 303 of the year (article 115). The tax agency has six months from the filing deadline to review; if it fails to pay in that time for reasons of its own, interest is added.

You do not have to wait a year. Members of the monthly refund register REDEME (article 116 of the Law, article 30 of the Regulation) can claim a refund every month. Conditions: an application on Form 036, no tax debts, no activities under the simplified regime. The price is a monthly 303 and keeping the IVA books online through SII (article 62.6 of the Regulation).

Pro rata (prorrata) applies when you have both taxable and exempt operations (articles 102–104). Only a share of input IVA is deductible: taxable operations divided by all operations. For example, a training centre with 30% of revenue from exempt official courses and 70% from taxable courses deducts 70% of its general input IVA. Sales to clients outside the EU do not reduce the share: operations outside Spain give the right to deduct if they would have done so in Spain (article 94.Uno.2º).

Exempt activities: no IVA, but no deduction either

Article 20 of the law exempts, among others:

• medical and health care services by doctors and health professionals;
• education by public or authorised institutions in official curricula, and private lessons by individuals in those subjects;
• insurance and most financial services;
• residential leases (but not holiday lets with hotel-type services) and some land and second-hand housing transactions;
• professional services of authors: writers, artists, composers, translators.

Exemption is not always an advantage. You charge no IVA, but you cannot deduct IVA on your costs either: it becomes part of your expenses. For a clinic spending €500,000 plus €105,000 IVA on refurbishing premises and furniture, that €105,000 is a straight cost it cannot recover.

Special schemes: equivalence surcharge, simplified, VAT group

Recargo de equivalencia (articles 148–163) is mandatory for retailers who are individuals or partnerships and resell goods without processing them. The supplier adds a surcharge on top of IVA: 5.2% on the standard rate, 1.4% on the 10% rate and 0.5% on the 4% rate. The retailer files no 303 for those sales and deducts no input IVA. An SL company is outside this scheme, so choosing between autónomo and SL for a shop affects IVA as well. How autónomo status works overall is covered in the article on working as an autónomo.

The simplified regime (régimen simplificado, article 122) is for individual autónomos with small turnover in activities listed in the annual módulos order: IVA is paid on fixed indicators rather than invoices. SL companies and REDEME members cannot use it.

A VAT group (articles 163 quinquies–nonies) lets companies account for IVA together if the parent holds more than 50% of the capital or voting rights of the subsidiaries throughout the calendar year. It helps when one company owes IVA and another is due a refund.

Worked example: an online school SL with €600,000 turnover

A Spanish SL sells recorded courses and platform subscriptions to private customers. Revenue net of IVA is €600,000 a year: 40% from clients in Spain, 35% from consumers in other EU countries, 25% from clients outside the EU. Costs in Spain are €120,000 plus IVA; Google and Meta ads are €60,000. For illustration, the average VAT rate in EU buyers’ countries is taken as 20%; in practice each country is calculated separately.

Form 303 for the year: €50,400 + €12,600 − €12,600 − €25,200 = €25,200. Form 369: €42,000. In total the school pays over €67,200 of IVA. Non-EU sales do not reduce the deduction, so all input IVA is recovered through 303.

Now the same school, but with live online groups instead of recordings. Under the current text of Spanish law and the DGT’s position this is teaching, and for private customers it carries Spanish IVA wherever they live. IVA on revenue is €600,000 × 21% = €126,000; after deducting €25,200, €100,800 is payable. That is €33,600 a year more than the first option, and with fixed tax-inclusive prices it comes straight out of margin. Product format, the company’s country and client segments are best decided before launch — together with where to register the business: the options are in the article on starting a business in Spain.

Canary Islands, Ceuta and Melilla

For IVA purposes these territories are not Spain (article 3 of the law): they have their own indirect taxes. The Canary Islands levy IGIC: the general rate is 7%, with reduced and increased rates as well (article 51 of Canary Islands Law 4/2012). Ceuta and Melilla levy IPSI at rates between 0.5% and 10% set by each city (article 18 of Law 8/1991). Goods shipped from the mainland to the Canaries leave as exports without Spanish IVA, and IGIC is paid on import into the islands. More on the archipelago in the article on the Canary Islands.

Key points on IVA in Spain

• IVA rates in 2026 are 21%, 10% and 4%; the tax is charged on the transaction price, and you pay the difference between IVA charged and IVA paid.
• EU businesses with a VIES number get invoices without IVA, reported on Form 349; clients outside the EU usually pay no IVA.
• EU consumers buying electronic services pay Spanish IVA up to €10,000 a year across the EU, then their own country’s rate via OSS and Form 369.
• Recorded courses and live classes are taxed differently: on the same revenue the gap can reach tens of thousands of euros a year.
• Google and Meta ads from Ireland mean reverse charge on Form 303 and a line on Form 349; imports from China mean IVA at customs, which is then deducted.
• Exempt activities charge no IVA but cannot deduct it either: input IVA becomes a cost.
• Sales structure and product format are best worked out before launch. We can review your case in a consultation.

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Frequently asked questions about IVA

What should I charge clients in other EU countries for an online course?

An EU business with a VIES number pays no IVA; it self-accounts. A consumer buying a recorded course pays Spanish 21% while your consumer sales across all EU countries stay at or below €10,000 a year, and the buyer’s country rate via OSS above that. Under Spanish law, live classes carry 21%.

Do I charge IVA to clients outside the EU?

Not to businesses outside the EU. Not to consumers outside the EU for electronic services, consulting, advertising, legal services, translation or data processing. Live teaching and services performed in Spain carry Spanish IVA. If the service is actually used in Spain, IVA also applies.

How is the €10,000 EU threshold calculated?

It is one figure for the whole EU, net of VAT: electronic services and distance sales of goods to consumers in all EU countries except Spain. The previous and current year both count. Once exceeded, you charge the buyer’s country VAT and pay it in Spain on one quarterly Form 369.

Do I pay IVA on Google and Meta ads?

Yes, through reverse charge. The invoice from Ireland comes without IVA; you charge yourself 21% on Form 303 and deduct it in the same quarter, so with full deduction the net cash effect is zero. Each purchase must also appear on Form 349, which requires registration in the ROI.

Is IVA paid when importing goods from China?

Yes. Import IVA is paid at customs on the customs value, duties and transport, at the same rate as a sale of the goods in Spain. There has been no low-value parcel exemption since 2021. A company or autónomo deducts this IVA on Form 303, and IOSS covers parcels to consumers up to €150.

What is the penalty for not filing Form 349?

If the form is not filed on time, the penalty is €20 per counterparty that should have been included, minimum €300 and maximum €20,000; half that if you file before the tax office asks. If the return was filed with omissions, the penalty is up to 2% of the omitted amount, minimum €500.

When is Form 303 due?

Quarterly: 1–20 April, July and October, and 1–30 January for the fourth quarter, together with the annual Form 390. Companies with turnover above €6,010,121.04 and REDEME members file monthly. The return is required even in a quarter with no activity.

Can I get IVA back if deductions exceed IVA charged?

Yes. By default the difference is carried forward, and the remaining balance is refunded on the last return of the year; the tax agency has six months to review it. To get refunds every month, you need to join the REDEME register, file 303 monthly and keep your books through SII.

Sources

• Law 37/1992 on IVA: articles 3, 20, 21, 25, 69, 70, 73, 78, 83, 84, 90, 91, 94, 102–104, 115, 116, 122, 148–163, 163 quinquies, 163 unvicies, 163 duovicies, 163 quinvicies, 167 (BOE)
• IVA Regulation, Royal Decree 1624/1992: articles 30, 62, 71, 74, 78–81 (BOE)
• Invoicing Regulation, Royal Decree 1619/2012, article 6 (BOE)
• General Tax Law 58/2003: articles 198 and 199 (BOE)
• Directive (EU) 2022/542: amendments to articles 53 and 54 of Directive 2006/112/EC (OJ, BOE copy)
• Order HAC/610/2021: Form 369 (BOE)
• Order HAC/611/2021: Form 035 (BOE)
• DGT ruling V3599-16: online courses — electronic service or teaching
• DGT ruling V3801-16: place of supply of online courses
• Spanish tax agency (AEAT) taxpayer calendar 2026
• AEAT: VAT number for trading with EU businesses and the ROI register
• Canary Islands Law 4/2012, article 51: IGIC rates (BOE)
• Law 8/1991, article 18: IPSI rates in Ceuta and Melilla (BOE)