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VAT practical manual 2021.

Tax rates

Sweetened beverages

With effect from 1 January 2021, the tax rate applicable to beverages containing added sweeteners, both natural and sweetening additives, is modified, which will now be taxed at the general tax rate of 21 percent, a measure that constitutes a social commitment to rationalize and promote their responsible consumption, particularly among children and young people.

Zero percent rate

From April 23, 2020 to December 31, 2021, the 0 percent rate will apply to domestic deliveries, imports and intra-community acquisitions of medical supplies to combat the pandemic caused by COVID-19 with the following requirements:

  1. The following goods will be subject to the 0% rate:

    • For the period from 23 April to 31 October 2020, those listed in the annex to Royal Decree Law 28/2020 of 22 September.

    • For the period from 1 November 2020 to 30 April 2021, those listed in the annex to Royal Decree Law 34/2020 of 17 November.

    • For the period from 1 May 2021 to 31 December 2021, those listed in the annex to Royal Decree Law 7/2021 of 27 April.

  2. The 0 percent rate will apply whenever the recipients are public law entities, clinics or hospitals, or private social entities referred to in section three of article 20 of the LIVA .

Type four percent

Article 7 of RD -Law 34/2020, with effect from November 19, 2020 to December 31, 2021, temporarily reduces from 21 to 4 percent the rate applicable to deliveries, imports and intra-Community acquisitions of disposable surgical masks whose recipients are other than public law entities, clinics or hospital centers, or private entities of a social nature referred to in section three of article 20 of the LIVA.

Reduction of the VAT rate to 10 percent on electricity supplies

With effect from June 26 to December 31, 2021, for electric energy contracts whose fixed term power does not exceed 10 kW, a reduction from 21 to 10 percent is established in the VAT tax rate that falls on all components of the electricity bill, when the average monthly price of the wholesale market in the month prior to the billing month has exceeded €45/MWh.

The VAT tax rate applicable to the electricity bill of holders of electricity supply contracts who are recipients of the social bonus, and also have recognized status as severely vulnerable or severely vulnerable at risk of social exclusion, is also reduced to 10 percent. , during the period referred to in the previous paragraph, regardless of the price of electricity in the wholesale market.