Reduced tax rate of 10 percent

The 10 percent rate applies to the following operations:

1. Deliveries, intra-community acquisitions and imports of the following goods, as well as the execution of works that are considered the provision of services and as an immediate result the obtaining of these goods:

   • Substances or products that are likely to be, habitually and ideally, used for human or animal nutrition, as well as animals, plants and other products that can be used, habitually and ideally, to obtain these products.

     Since January 1, 2021, beverages that contain added sweeteners, both natural and sweetening additives, are excluded from this concept, and are now taxed at the general tax rate of 21 percent.

   • Certain goods that can be used in agricultural, forestry or livestock activities.

   • Water suitable for human or animal food or for irrigation.

   • Medicines for veterinary use.

   • Pharmaceutical products included in Chapter 30 "Pharmaceutical products" of the Combined Nomenclature, susceptible to direct use by the final consumer, other than medicines for veterinary use and those to which the 4 percent rate applies.

     Pads, tampons, panty liners, condoms and other non-medicinal contraceptives, as well as medical equipment, devices and other instruments, listed in the eighth section of the annex to the Tax Law, which, due to their objective characteristics, are designed to alleviate or treat deficiencies, for personal and exclusive use of people who have physical, mental, intellectual or sensory deficiencies, without prejudice to the goods for which the application of the 4 percent rate is specifically provided.

     Other accessories, spare parts and spare parts of said goods are not included in this category of goods.

   • The buildings or part thereof suitable for use as homes, including garages, with a maximum of two, and annexes that are transferred jointly.

   • Flowers, live ornamental plants, as well as seeds, bulbs, cuttings and other products of exclusively plant origin that can be used to obtain live flowers and plants.

2. The following services:

   • Transportation of travelers and their luggage.

   • Hospitality, camping and spa services, restaurants and, in general, the supply of food and drinks to be consumed on the spot, even if they are prepared upon request by the recipient.

   • Mixed hospitality services, shows, discos, party rooms, barbecues or other similar services are not expressly exempt from the reduced rate.

   • Certain services performed in favor of owners of agricultural, forestry or livestock holdings.

   • Cleaning services for public roads, parks and public gardens.

   • Services for the collection, storage, transportation, recovery or disposal of waste, cleaning and deratization of public sewers and the collection or treatment of wastewater.

   • Entry to libraries, archives and documentation centers, museums, art galleries, art galleries, theaters, circuses, bullfights, concerts, and other live cultural shows. This reduced rate also applies to admission to movie theaters.

   • Social assistance service benefits that are not exempt nor do the 4 percent rate apply to them.

   • Amateur sports shows.

   • Commercial exhibitions and fairs.

   • The execution of renovation and repair work carried out in buildings intended for housing that meet certain requirements.

   • Leases with the option to purchase buildings or part thereof intended exclusively for housing, including parking spaces, with a maximum of two units, and annexes located therein that are leased jointly.

   • The transfer of the rights of use by shift of buildings, real estate complexes or architecturally differentiated sectors of them when the property has at least ten accommodations, in accordance with the provisions of the regulations governing these services.

   • Those provided by performers, artists, directors and technicians, who are natural persons, to the producers of cinematographic films that may be exhibited in theaters and to the organizers of theatrical and musical works.

3. Executions of work, with or without contribution of materials, that meet the following requirements:

   • That are a consequence of contracts directly formalized between the promoter and the contractor.

   • That have as their object the construction or rehabilitation of buildings or parts thereof intended mainly for housing.

4. Sales with installation of kitchen, bathroom and built-in cabinets, when certain requirements are met.

5. The execution of work, with or without the contribution of materials, as a consequence of contracts directly formalized between the communities of owners of the buildings referred to in point 3 and the contractor whose purpose is the construction of complementary garages, provided that they do not exceed two places to be awarded to each of the owners.

6. Imports of art objects, antiques and collectibles, as well as intra-community deliveries and acquisitions of art objects when the delivery is made by their authors or successors and non-reseller entrepreneurs with the right to full deduction of the input tax.

7. From June 26, 2021 to June 30, 2022, for electric energy contracts whose fixed term power does not exceed 10 kW, a reduction from 21 to 10 percent is established in the tax rate of VAT that falls on all the components of the electricity bill, when the average monthly price of the wholesale market in the month prior to the billing 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.