Frequently asked questions raised in this chapter

1. A community of owners acquires goods and services necessary for the common elements of the property, receiving invoices in their name. Can you bill the owners for the cost of this repair?

No, a community of owners in a horizontal property regime, which acquires goods and services necessary for the maintenance of the common elements, belongings and services and which distributes the expenses among the community members does not carry out business activities, but is considered a final consumer for the purposes of VAT.

2. Who must pay the tax in the case of a service subject to Spanish VAT that consists of the preparation of a computer program commissioned by the client in accordance with its specification carried out by a German company not established to a Spanish taxable person?

The Spanish company, since it is a passive subject for investment.

3. When is tax due if goods are sold with a suspensive condition and assuming that there have been no advance payments?

The tax is accrued when the goods are placed in the possession of the purchaser, even if ownership is not transferred.

4. Is it part of the tax base of the VAT the amount of the deposit given to the landlord by the tenant of a premises?

The amounts of money given to the landlord as a deposit that must be returned to the tenant at the end of the contract do not form part of the tax base as they do not have the character of consideration.

5. In corrective invoices for returned merchandise. Does the tax rate in effect when the sale is made apply or the one in effect at the time the return is made?

The rate applicable to corrective invoices will be the one in force at the time of accrual of the transactions whose invoices are subject to correction.

6. Can the tax base be modified in the event of non-payment by the client of the amount owed?

As a general rule, it is not possible to modify the tax base. It is only possible when there is a declaration of bankruptcy, in accordance with the provisions of Law 22/2003, of July 9, Bankruptcy, in force since September 1, or when the credit is uncollectible in accordance with article 80.Four of the LIVA .

7. What tax rate is charged on special bread?

As established in the Resolution of February 24, 2025 of the General Directorate of Taxes, the following will be taxed at the reduced rate of 4 percent: common, special and gluten-free bread, that is, all products referred to in Royal Decree 308/2019, of April 26, which approves the quality standard for bread. Likewise, products that, responding to the definition of common bread, special bread or semi-finished products referred to therein, have been made with gluten-free flour, either naturally or because it has been specially treated to reduce its gluten content, or in which the flour has been replaced by other naturally gluten-free ingredients; although these are the majority in their composition.

In this way, the special bread (multi-grain bread, Vienna bread, toasted bread, biscuits, breadsticks, sliced bread, breadcrumbs, sponge bread, fruit bread or gluten-free bread, among others) will be taxed at the reduced rate of 4 percent.

8. What rate is taxed on cereals used for livestock feed?

They will be taxed at the reduced rate of 4 percent provided they are considered natural products, regardless of their intended use by the purchaser (human or animal food or other purposes). 

9. What tax rate is applied to the sale of school backpacks and educational puzzles?

At the general rate of 21 percent.

10. What rate is applied to the delivery of a flat that is to be used as company offices?

It will be taxed at the reduced rate of 10 percent provided that, objectively considered, it is suitable for use as a home, even if it is used for other purposes.

11. Can the 4 percent rate be applied to repair services for a passenger car used to transport a person with reduced mobility?

No, the repair services to which the 4 percent can be applied are exclusively those related to the repair of vehicles included in number 20 of Annex I of Royal Legislative Decree 339/1990.

12. What tax rate is applied to the sale of textbooks?

At the reduced rate of 4 percent.

13. What rate is taxed for admission to movie theaters?

As of July 5, 2018, they will be taxed at the reduced rate of 10 percent. Until that date, at the general rate of 21 percent.

14. What rate is applied to pads, tampons, panty liners, condoms and other non-medical contraceptives?

From 1 January 2023, they will be taxed at the reduced rate of 4 percent. Until that date, at the reduced rate of 10 percent.