New Spanish VAT Regulations in 2025

VAT regulations in Spain have changed for 2025!

Here’s what you need to know, and what you need to do in order to stay compliant as a business trading in Spain.

VAT Rate Changes in 2025

Spain previously introduced temporary VAT reductions to a select number of product categories in response to rising inflation levels under the Royal Decree-Law 4/2024.

The temporary reduction has now been reversed, and sellers must charge an updated rate.  As of 1 January 2025, the following product categories now have updated VAT rates:

• Basic products: 4% (up from the previously reduced rate of 2%)
• Olive oil: 4% (up from the previously reduced rate of 2%)
• Seed oils and pasta: 10% (up from the previously reduced rate of 7.5%)

The reversal means that the reduced rates of VAT are now 10% (standard reduced rate), 4% (super reduced rate) and 0% (zero-rate).

The standard rate of 21% still applies to all other products ineligible for reduced rates or zero-rating.

How will the changes affect me?

Businesses will need to check how their products are classified in terms of VAT.

‘Basic products’ includes basic foodstuff products such as bread, cereals, cheese, eggs, flour, fruits, legumes, milk and vegetables.

Other product categories not listed in the update maintain their original reduced rates. 

10%:

• Some groceries
• Select pharmaceutical products
• Some medical devices
• Some non-alcoholic beverages

4%:

• Some foodstuffs
• Select pharmaceutical products
• Some medical devices
• Books/newspapers
• Magazines

More information on the VAT rates for individual products can be found on the Spanish Tax Authority’s official guidance. 

Ongoing compliance with TBA Global 

Ensuring compliance with ever-changing tax regulations is essential to ensuring a successful business.

At TBA Global, we’ve helped thousands of businesses expand across both European and global markets.  Our compliance solutions are tailored to suit your individual needs.

For the Spanish market, we offer the following services.

Spanish VAT Registration and Filing

We offer a speedy VAT registration service, and compliance with ongoing VAT return declarations.  

Most businesses will need to file quarterly returns, and an annual return.

 Failure to comply could lead to financial penalties or even the revocation of VAT registration. For businesses not established in the EU, a fiscal representative is required in order to apply for VAT, and to submit VAT returns. 

TBA Global has an established presence in Spain and can act as a fiscal representative for your business.

Extended Producer Responsibility (EPR) compliance

In line with European Union requirements, Spain has implemented a set of environmental policies aimed at encouraging sustainable practice and reducing wastage. 

This means that businesses selling regulated product categories (or products containing regulated materials) need to apply for the relevant EPR registration(s) and comply with ongoing requirements.

Regulated product categories (and materials) include:

• Batteries
• Packaging
• Waste Electrical and Electronic Equipment

Ongoing requirements including submitting sales declarations on a timely basis, and paying a proportional contribution fee.

Our experts will assist with the EPR registration process, declaration and ensuring that you pay the correct contribution fees. 

European Union Responsible Person services

Businesses selling regulated products (such as those requiring CE certification) are required to appoint a Responsible Person to comply with product safety requirements.

The European Union recently introduced the General Product Safety Regulation which extends the Responsible Person requirement to many non-CE certified products.  This means that businesses are now required to appoint a Responsible Person for most products.

Appointing TBA Global as your Responsible Person can help ensure that you can continue selling your products in Spain and the wider European Union. 

If you need to arrange product testing and CE certification before appointing us, we can also arrange that for you.