Spanish VAT Rates

[esteponaman]

Hi,

I read that the lower vat was increased from 7% to 8% and also a new lower rate was introduced of 4%

I think that the 4% rate applies to renovations to homes or extensions to existing properties
but does anyone know if it applies to new builds?

Thanks

[annfoto]

I could be wrong but as I understand it the 4% rate only applies to VPO social housing.

[esteponaman]

Found this with google ,but not sure if it is correct


VAT RATES
The standard VAT rate in Spain is 18% (from July 2010). There is a reduced rate of 8% (from July 2010) for: passenger transport; hotel and restaurant services; and other. There is also a 4% VAT rate for: food and drink; goods from chemists; construction work; and some newspapers.

[gus-lopez]

VAT RATES
The standard VAT rate in Spain is 18% (from July 2010). There is a reduced rate of 8% (from July 2010) for: passenger transport; hotel and restaurant services; and other. There is also a 4% VAT rate for: food and drink; goods from chemists; construction work; and some newspapers.

The 4% rate has always existed in Spain, & the UK, for these items.

[El Cid]

. There is also a 4% VAT rate for: food and drink .

Not quite that simple.

It only applies to basic necessities such as basic bread, frozen dough, eggs, cheese, milk, beans and fruit and vegetables.

Sid

[Campo Steve]

It only applies to basic necessities such as basic bread, frozen dough, eggs, cheese, milk, beans and fruit and vegetables.

Sid

That would explain the differing rates on food items in Makro. Always wondered why that happened. Thanks Sid

[esteponaman]

VAT RATES
The standard VAT rate in Spain is 18% (from July 2010). There is a reduced rate of 8% (from July 2010) for: passenger transport; hotel and restaurant services; and other. There is also a 4% VAT rate for: food and drink; goods from chemists; construction work; and some newspapers.

It only applies to basic necessities such as basic bread, frozen dough, eggs, cheese, milk, beans and fruit and vegetables.

Sid

That would explain the differing rates on food items in Makro. Always wondered why that happened. Thanks Sid

The 4% rate has always existed in Spain, & the UK, for these items.

My original question referred to construction work -
Does 4% vat apply to either renovations or new builds or both?


Thanks

[annfoto]

4% only applies to subsidised social housing. New house is 8% renovation work is either 8% or 18% depending on what is being done.

[esteponaman]

Annfoto

Thanks for explaining that .