Spanish IVA Explained

The 4% rate – Will remain unchanged at 4% in July 2010

This is applied to all items that are considered to be of basic and primary need. It includes :

- Bread, frozen dough, eggs, cheese, milk, beans and fruit and vegetables.

- Books, magazines and newspapers.

- Medicines ( NOT for Animals though )

- Vehicles for the disabled, wheel chairs and other transport for the disabled.

- Prosthetics and implants.

- Official protected housing.

The 7% rate – to increase to 8% in July 2010

- Foodstuffs in general (Excepting those in the 4% band)

- Soft drinks.

- Animals that are to be for human consumption or breeding.

- Agricultural products, farming and forestry activities, such as seeds and fertilisers.

- Contact lenses and glasses.

- Disabled lifts and products for the diagnosis of illnesses.

- Health assistance services, social services, and dental work.

- Imported artworks and antiques.

- Hairdressing.

- The sale of property, including garages and annexes.

- House construction (between promoter and contractor).

- Services supplied by artists and technicians.

- Sports, cultural and recreational services, exhibitions and fairs.

- Funeral services.

- Hotel and restaurants

- Cleaning of streets and public gardens.

- Refuse collection.

- Public transport and Motorway Tolls.

The General Rate – 16% - But due to rise to 18% in July 2010

- Alcoholic drinks and tobacco

- Animals used in bullfighting

- Agricultural machinery.

- CD’s. & DVD’s

- Devices for the diagnosis and monitoring of pregnancy.

- Television and radio services.