VAT Rates, Daily and Mileage Allowances and E-archiving in Spain

VAT rates in Spain

Spain imposes Value Added Tax (VAT) at different rates as follows for various goods and services.

1. Standard rate - 21%

The standard VAT rate is applicable to all taxable goods and services in Spain, except when a specific measure allows for a reduced rate.

2. Reduced rate - 10%

Some foodstuffs; water supplies; domestic passenger transport; intra-community and international transport by road, rail and inland waterways; some social housing; hotel accommodation; restaurants and catering services; some soft drinks; bars, cafes, night clubs and alcoholic beverages sold therein; take away food; cut flowers and plants for food production; some supplies of new buildings; some construction work on new buildings; admission to sporting events; admission to certain cultural services.

3. Reduced rate - 4%

Some foodstuffs; some books (excluding e-books); certain newspapers and periodicals.

4. Zero rate - 0%

Printed books (including e-books); newspapers and periodicals; supplies of food and drink (some exceptions); take away food (if bought on the catering premises); domestic passenger transport; some construction work on new buildings; some supplies of new buildings; intra-community and international passenger transport.

Source: https://sede.agenciatributaria.gob.es/static_files/Sede/Tema/IVA/IVA_reperc/Tipos_IVA_2024.pdf

Daily allowances in Spain

Employees of companies travelling for business may be entitled to per diem allowances, as outlined below:

Domestic and Foreign Daily Allowance

Employee can have meal, transportation, accommodation expenses during travel. There are tax free limits to cover meal expenses. If the employee does not provide a hotel receipt for reimbursement, he can receive tax free overnight allowance.

Rules and rates for daily allowances have not changed in Spain for quite a few years. There are no specific dates when the government may review these rates.

Source: https://sede.agenciatributaria.gob.es/Sede/ayuda/manuales-videos-folletos/manuales-ayuda-presentacion/irpf-2021/7-cumplimentacion-irpf/7_1-rendimientos-trabajo-personal/7_1_1-rendimientos-integros/7_1_1_2-dietas-gastos-viaje/asignaciones-gastos-manutencion-estancia.html

Mileage allowances in Spain

An employer in Spain can reimburse employees for using a personal vehicle for business journeys. This does not apply to commuting from home to their first place of work.

There is a maximum mileage allowance per kilometer that the employer can reimburse tax-free for business journeys. This maximum amount is currently 0,26 €/km.

Any excess received over the indicated amounts is fully subject to taxation as employment income.

Source: https://www.boe.es/boe/dias/2023/07/17/pdfs/BOE-A-2023-16461.pdf

Electronic archiving and retention period in Spain

To legally destroy paper invoices, the digitisation process must be certified, meaning it complies with the standards set by the Agencia Tributaria. This ensures the digital copies are legally valid and admissible for tax inspections or audits.

• The process must guarantee:

  • Integrity (no alteration of content)

  • Authenticity (traceability of origin)

  • Legibility (clear and readable copy)

  • Accessibility during the required retention period

You must use certified software or work with a certified digitisation provider (often listed or approved by the AEAT). The software should:

• • Apply advanced electronic signatures or

  • Use certified electronic seals and time stamps

Source: https://www.boe.es/buscar/doc.php?id=BOE-A-2007-7866