TYPES OF APPLICABLE VAT:
Before paying an invoice, you have to check the VAT that is being applied to you:
- Super reduced rate 4%: it is applied to the articles that are considered of first necessity. These are basic foods of the shopping cart (milk, bread, etc.), books (except the electronic book), medicines, newspapers (newspapers and magazines), prosthetics, internal implants, orthoses and vehicles for people with disabilities.
- Reduced rate of 10%: applied to food products and goods for agricultural, forestry or livestock use, medicines for veterinary use, water, pharmaceutical products for use by consumers, purchase of homes and garages, rehabilitation and renovation of housing, flowers and plants, passenger transport services, sports services with amateur character, social assistance, fairs and commercial exhibitions, among others.
- General Rate 21%: it is applied to all those goods and services that do not fall into the two previous categories and that are not exempt from VAT either.
- Activities exempt from VAT:
Medical operations: any medical service other than cosmetic surgery, acupuncture, acupressure and derivatives; It will be exempt from VAT.
Educational activities: any activity of both public and private schools. VAT courses, extracurricular activities and private classes are not exempt from VAT.
Activities of a social nature: social, cultural and sports activities carried out by non-profit organizations in which the president does not charge for his work (libraries, museums, zoos, etc.)
Financial and insurance operations: any activity related to the world of banking, financing and insurance.
Real estate operations: real estate deliveries or rustic land for public or non-buildable use.