IVA (VAT) for Autónomos: Complete Tax Guide

IVA (Impuesto sobre el Valor Añadido) is the most important indirect tax in the Spanish tax system and one that affects every autónomo's daily operations. Although many autónomos see it as just another cost, IVA is actually a consumption tax: the autónomo acts as a collector on behalf of Hacienda, not as the taxpayer.

This guide covers everything you need to know about IVA: how it works, what rates exist, when you are exempt, how input and output IVA are offset, and what special regimes you should be aware of. For filing deadlines and the procedure for the quarterly declaration, see our Modelo 303 guide.

What is IVA?

IVA is an indirect tax on consumption applied at every stage of the production and distribution chain. It is an EU-harmonised tax, meaning all member states apply a common IVA framework, though each country sets its own rates.

In Spain, IVA is regulated by Ley 37/1992, de 28 de diciembre, del Impuesto sobre el Valor Añadido and its implementing regulation (Real Decreto 1624/1992).

How does IVA work?

The mechanism is straightforward: each professional or business in the chain charges IVA to their customer and deducts the IVA they paid to their suppliers. Only the end consumer actually bears the cost of the tax.

Simplified example: A carpenter buys wood for €100 + 21% IVA (€21). He builds a table and sells it for €300 + 21% IVA (€63). The carpenter remits the difference to Hacienda: €63 − €21 = €42. The final buyer paid €63 in IVA, which is split between the wood supplier (€21) and the carpenter (€42), all reaching the Agencia Tributaria.

This is why autónomos who count IVA as a personal expense are misunderstanding the tax. The IVA you charge your clients was never your money — it is a consumer tax you collect and transfer to Hacienda.

IVA rates in Spain

Spain applies three IVA rates. The applicable rate depends on the good or service:

Rate	Percentage	Examples
General	21%	Professional services, electronics, clothing, vehicles
Reduced	10%	Food (non-basic), passenger transport, hospitality, new housing, eyewear, hygiene products
Super-reduced	4%	Bread, milk, eggs, fruit, vegetables, cereals, cheese, olive oil, books, newspapers, medicines, prosthetics, social housing

Most autónomos providing professional services apply the general rate of 21%. Those in sectors such as hospitality or passenger transport apply the reduced rate of 10%.

Who must charge IVA?

All autónomos and businesses performing taxable and non-exempt activities must charge IVA on their invoices. This includes:

• Professional services (consulting, design, programming, advisory)
• Sale of goods and products
• Rental of commercial premises
• Artistic and cultural activities

If your activity is subject to IVA, you must include it on all your invoices, file it quarterly via Modelo 303, and submit the annual summary with Modelo 390.

IVA-exempt activities

Article 20 of Ley 37/1992 lists the activities exempt from IVA. Autónomos who exclusively perform these activities do not charge IVA, do not file Modelo 303, and cannot deduct input IVA:

• Healthcare: doctors, dentists, psychologists, physiotherapists, and other healthcare professionals
• Education: regulated teaching and private tutoring in curriculum subjects
• Financial and insurance services: insurance brokering, financial operations
• Social services: social assistance, Seguridad Social benefits
• Artistic activities: certain performances by artists (subject to conditions)

Exempt autónomos must include on their invoices the statement: "Operación exenta de IVA según el artículo 20 de la Ley 37/1992" (Operation exempt from IVA under Article 20 of the IVA Act).

IVA repercutido vs. IVA soportado

Understanding the difference between IVA repercutido and IVA soportado is essential for any autónomo:

• IVA repercutido (output IVA): the IVA you charge your clients on your sales invoices. This is the amount you collect on behalf of Hacienda.
• IVA soportado (input IVA): the IVA you pay on your purchases and professional expenses. This is the amount you can deduct.

The difference between the two is what you declare on Modelo 303 each quarter:

IVA to pay = IVA repercutido − IVA soportado

• Positive result: you remit the difference to Hacienda.
• Negative result: you can carry the balance forward to future quarters or request a refund in Q4.

Deductible IVA soportado: requirements

Not all IVA you pay is deductible. To deduct IVA soportado, the following requirements must be met:

1. Link to your activity: the expense must be directly related to your professional activity
2. Full invoice: you must hold an invoice with all fiscal data required by the invoicing regulation (Reglamento de Facturación)
3. Accounting record: the invoice must be entered in your received invoices register (libro registro de facturas recibidas)
4. Time limit: the right to deduct expires 4 years from the tax event (devengo)

Common deductible expenses: office supplies, IT equipment, software and licences, professional services (accountant, lawyer), phone and internet (business share), commercial rent, professional travel.

Expenses with restrictions: vehicles allow only 50% IVA deduction (unless higher professional use is proven), and business meals have limitations depending on their justification.

For more strategies on optimising deductible expenses, see our tax optimisation guide for autónomos.

Inversión del sujeto pasivo (reverse charge)

Inversión del sujeto pasivo (reverse charge) is a mechanism where the obligation to declare and pay IVA shifts from the seller to the buyer. It is regulated under Article 84 of the IVA Act.

When does it apply?

• Services received from EU providers: when a Spanish autónomo purchases services from a professional or company in another EU country (e.g., hosting in Ireland, advertising services in France), the invoice arrives without IVA and the Spanish autónomo must self-assess the IVA
• Certain construction operations: subcontracting in building works
• Investment gold deliveries and other specific cases

How does it work?

The buyer receives an invoice without IVA, bearing the statement "Inversión del sujeto pasivo — Artículo 84 Ley 37/1992". The buyer simultaneously declares the IVA as both repercutido and soportado on Modelo 303, resulting in a net effect of zero. This only applies to B2B transactions (between professionals or businesses), never to end consumers.

Intra-community operations

When a Spanish autónomo trades with businesses in other EU countries, specific IVA rules come into play.

ROI registration

To carry out intra-community operations, the autónomo must register with the Registro de Operadores Intracomunitarios (ROI) via modelo 036. This assigns a NIF-IVA (VAT identification number for intra-community purposes) that can be verified on the European VIES system (VAT Information Exchange System).

B2B services

For services between professionals in different EU countries, IVA is declared in the recipient's country (reverse charge). The invoice is issued without IVA and the buyer self-assesses IVA in their own declaration.

Goods: deliveries and acquisitions

• Sale to an EU company (intra-community supply): invoice exempt from IVA, provided the buyer holds a valid NIF-IVA on VIES
• Purchase from an EU company (intra-community acquisition): the Spanish buyer self-assesses IVA at the Spanish rate

Modelo 349

All intra-community operations must be reported on Modelo 349, which is an informative declaration (no payment involved). It is filed quarterly or monthly depending on volume.

Canary Islands: IGIC instead of IVA

The Canary Islands are not included in the EU's IVA territory. Instead, they apply IGIC (Impuesto General Indirecto Canario), a similar tax but with different and generally lower rates:

IGIC rate	Percentage
Zero rate	0%
Petroleum	1%
Super-reduced	3%
Reduced	5%
General	7%
Increased	9.5%
Special increased	15%
Special	20%

Autónomos in the Canary Islands file Modelo 420 (quarterly) and Modelo 425 (annual summary) instead of Modelo 303 and 390. For more details, see our guide for autónomos in the Canary Islands.

Transactions between mainland Spain and the Canary Islands are treated as exports/imports for IVA/IGIC purposes, not as intra-community operations. The same applies to Ceuta and Melilla, which have their own indirect tax (IPSI).

Recargo de equivalencia

Recargo de equivalencia is a special IVA regime mandatory for retail traders who are individuals (personas físicas) and sell products to end consumers without transforming them. It is common in clothing shops, stationery stores, hardware stores, and similar businesses.

How does it work?

The wholesale supplier applies the standard IVA on the invoice plus an additional surcharge:

IVA rate	Recargo de equivalencia
21% (general)	5.2%
10% (reduced)	1.4%
4% (super-reduced)	0.5%
Tobacco	1.75%

In return, the retailer does not file Modelo 303 and does not keep IVA accounting books. IVA is settled through the surcharge paid to the supplier. The retailer charges IVA on invoices to professional clients but has no obligation to file quarterly declarations.

This regime greatly simplifies tax obligations but prevents deducting input IVA. It is important to assess whether it works for your activity. More information in our autónomo vs. SL guide.

IVA declarations: calendar

IVA is managed through several declarations throughout the year. See the full fiscal calendar for exact dates each year:

Declaration	Frequency	General deadline
Modelo 303	Quarterly	April 1-20, July 1-20, October 1-20; January 1-30 (Q4)
Modelo 390	Annual	January 1-30
Modelo 349	Quarterly / monthly	Same deadline as Modelo 303

For a complete summary of all your tax obligations as an autónomo, including IRPF, withholdings, and Seguridad Social, see our dedicated guide.

Official sources

• Ley 37/1992, del IVA — BOE
• Real Decreto 1624/1992 — Reglamento del IVA — BOE
• Inversión del sujeto pasivo — Art. 84 LIVA — BOE
• Tipos impositivos del IVA — AEAT
• Tipos IVA 2026 (PDF) — AEAT
• Recargo de equivalencia — AEAT
• Operaciones intracomunitarias y ROI — AEAT
• VIES system — European Commission
• Ley 9/2025 — Presupuestos Generales de Canarias (IGIC 1% petróleo)