Self-employed VAT in Spain: rates, exemptions and returns
How VAT works if you are self-employed in Spain in 2026: the 21%, 10% and 4% rates, exempt activities, the reverse charge, special schemes, Form 303 deadlines and a real quarter worked through with numbers.
In short
- In 2026 the VAT rates are still 21% standard, 10% reduced and 4% super-reduced.
- Each quarter you pay the VAT you charged minus the deductible VAT you paid; if the result is negative, you carry it forward or claim a refund in the last period of the year.
- The VAT exemption of up to €85,000 for small businesses is not in force in Spain: if your activity is not exempt, you charge VAT from your first invoice.
- With the reverse charge, the seller invoices without VAT and the buyer declares it on their own Form 303.
- Form 303 for the third quarter is due by 20 October 2026, and for the fourth quarter by 1 February 2027.
How VAT works for the self-employed and how much you pay
VAT for the self-employed in Spain works like this: you charge the tax on your invoices (21%, 10% or 4% depending on what you sell), subtract the VAT you paid on business expenses and pay the difference every quarter with Form 303 (modelo 303). The VAT you charge is not your income: you collect it for Hacienda.
VAT (IVA in Spain) is paid by the final consumer; you are the intermediary between them and the AEAT, Spain's tax agency. Two terms:
- Output VAT (IVA repercutido): the VAT you charge your clients on your invoices.
- Input VAT (IVA soportado): the VAT you pay your suppliers on your purchases and expenses.
Under the general scheme, each quarter's sum is the VAT that became due minus the deductible input VAT. VAT becomes due when you provide the service or deliver the goods, whether or not you have been paid, under Article 75 of the VAT Act. There are special rules: if you receive an advance payment, it becomes due when you receive it, and under cash accounting, when the invoice is paid.
If the result is positive, you pay. If it is negative, the balance is carried forward to the following quarters for four years, under Article 99.Cinco of the VAT Act, or you claim a refund in the last return of the year, with Form 303.
What taxes the self-employed pay in Spain (and where VAT fits)
The full picture:
| Item | What it taxes | Usual form | When |
|---|---|---|---|
| VAT (IVA) | Your sales and services (your client pays it) | 303 quarterly and 390 annual | April, July, October and January |
| Income tax (IRPF) | The profit from your activity: income minus deductible expenses under direct assessment, or a módulos calculation under the objective assessment system | 130 (or 131 on módulos) quarterly and 100 annual | Quarterly and in the annual Renta return |
| Withholdings you make | What you pay professionals, employees or the landlord of your premises | 111 and 115 | Quarterly |
| Self-employed contribution | Your payment to Seguridad Social, the Spanish social security system (RETA) | Not a tax | Every month |
VAT is charged on your sales, not your profit: you pay it even if the quarter went badly. IRPF depends on the profit from your activity (direct assessment or módulos); we explain it in our guide to income tax for the self-employed.
VAT rates in 2026: 21%, 10% and 4%
There are three usual rates, none of which has changed for 2026, plus special cases, such as the 0% rate for certain donations of goods to non-profit organisations (art. 91.Cuatro):
| Rate | Article | Examples |
|---|---|---|
| Standard, 21% | Art. 90 | Most professional services: design, consulting, programming, marketing, training that does not meet the exemption conditions, repairs, clothing, technology |
| Reduced, 10% | Art. 91.Uno | Most food, hospitality and restaurants, passenger transport, tickets to museums, cinemas and concerts, new homes, certain home renovation works |
| Super-reduced, 4% | Art. 91.Dos | Ordinary bread, milk, cheese, eggs, fresh fruit and vegetables, olive oil, books and newspapers (digital too), medicines for human use |
Worth knowing:
- The rate depends on the transaction, not on you. The same self-employed person can invoice at 21% and at 10% if they do different activities. A photographer who shoots reportage (21%) and sells her photo book (4%) applies two rates.
- The rate in force when the VAT becomes due applies, usually when the service is provided or the goods delivered, under Article 90.Dos.
- The 10% rate reaches certain short rentals in December. Royal Decree-law 29/2026, published in the BOE (Spain's official gazette) on 7 October, means that from 1 December 2026 rentals of furnished homes for 30 nights or fewer to the same tenant (except in the home where the landlord lives) are no longer exempt and are taxed at 10%. It also applies the reduced rate to certain renovation works on homes let as a main residence.
A royal decree-law has to be ratified within the following 30 days and, in the BOE checked on 12 October 2026, no resolution ratifying or repealing it had been published. If you rent by the night, check its status before you invoice in December.
Who is exempt from VAT: the exemptions that affect the self-employed
An exempt transaction carries no VAT on the invoice. There are two kinds: the limited exemptions in Article 20 of the VAT Act, which as a general rule do not let you deduct the VAT on your expenses (Article 94.Uno.3.º makes an exception for certain insurance and financial transactions with clients outside the EU), and the full exemptions (exports and intra-EU supplies, Articles 21 and 25), which do. The Article 20 exemptions that matter most for the self-employed:
| Exempt activity | Paragraph of art. 20.Uno | Important detail |
|---|---|---|
| Healthcare for people: doctors, psychologists, speech therapists, opticians and other health professionals | 3.º | Only care related to the diagnosis, prevention and treatment of illness |
| School, university and language teaching and vocational training | 9.º and 10.º | Authorised public or private bodies (9.º); also private lessons in subjects from official curricula given by an individual (10.º) |
| Insurance and insurance intermediation | 16.º | Includes brokers and agents |
| Financial transactions | 18.º | Bank fees, loans, collections and payments, with exceptions |
| Home rental | 23.º | Not commercial premises nor, from December 2026, certain short furnished rentals |
| Services of writers, translators, visual artists, composers, screenwriters and press contributors | 26.º | Only the professional services the individual provides, including copyright |
What an Article 20 exemption means in practice:
- You do not charge VAT, but the invoice must state that the transaction is exempt or cite the article that covers it, under Article 6.1.j of the Invoicing Regulation.
- As a general rule, you cannot deduct the VAT on your expenses for that activity (with the full exemptions, you can). The VAT you pay on materials or software becomes one more cost.
- You do not file Form 303 if everything you do is exempt under Article 20. Article 71.1 of the VAT Regulation excludes anyone who only carries out transactions exempt under Articles 20 and 26 of the Act; anyone who exports or makes intra-EU supplies does file. If you combine exempt and non-exempt activities, you do file it and will probably apply a pro rata to deduct only part of the input VAT.
This decision tree sums up what applies in your case:
No VAT for the self-employed up to €85,000?
In October 2026 the short answer is no, not yet. Directive (EU) 2020/285 (also published in the BOE) has allowed each country since 1 January 2025 to apply a VAT exemption scheme for small businesses, with a national threshold of up to €85,000 of annual turnover. But it is an option, not an obligation.
The consolidated text of the VAT Act in the BOE, last updated on 7 October 2026, does not include that scheme. Until a law introducing it is passed, if your activity is subject to VAT and not exempt, you charge VAT and file Form 303 as always, whether you invoice €10,000 or €80,000 a year. If passed, that law will set the Spanish threshold, which may be lower than €85,000, and its start date.
Important
What you may have read in the press about a VAT-free threshold are proposals, not rules in force. If you stop charging it on your own initiative, that VAT is still owed and you risk surcharges or penalties.
The reverse charge: when the seller invoices without VAT
Normally the taxable person, who declares and pays the VAT, is the seller. Under the reverse charge (inversión del sujeto pasivo), that obligation moves to the buyer. Article 84.Uno.2.º of the VAT Act lists the cases. The most common ones:
- You buy services from a business not established in Spain and the service is treated as provided in Spain (the general rule when the client is a business or professional). For example, advertising on a platform based in Ireland or software invoiced from another country. The business invoices you without VAT and you are the one who declares it. There are exceptions in letter a of Article 84.Uno.2.º, such as property rentals that are subject to VAT and not exempt.
- Construction or renovation work contracted directly between the developer and the contractor, and also between the contractor and its subcontractors, as long as the recipient acts as a business or professional.
- Sales of scrap, waste and recovered materials (metals, plastic, paper, cardboard, glass).
- Sales of property in insolvency proceedings, when a security is enforced or when the exemption is waived.
- Unwrought or semi-finished gold of a purity of 325 thousandths or more, and certain supplies of silver, platinum and palladium.
How it works, step by step:
- The seller issues the invoice without VAT and with the wording "inversión del sujeto pasivo", as required by Article 6.1.m of the Invoicing Regulation.
- As the buyer, you work out the VAT that would apply (for example, 21%).
- On your return (usually Form 303) you declare it as output VAT: in boxes 10 and 11 if it is a service from a supplier in another EU country, and in boxes 12 and 13 for other reverse charge cases. And, when you are entitled to it and for the deductible amount, also as deductible VAT.
- If the expense is 100% deductible, the net effect is zero, but the transaction must appear on Form 303.
Both invoices carry no VAT, but they differ:
Transactions with other EU countries have their own rules, such as the ROI (the register of intra-EU operators), which we explain in intra-EU VAT and the ROI.
VAT schemes for the self-employed
Most people are on the general scheme, but others change the calculation:
| Scheme | Who it is for | How it works |
|---|---|---|
| General | Most self-employed people | Output VAT minus deductible input VAT, with Form 303 |
| Simplified (módulos) | Certain activities that are also taxed on módulos for IRPF | Calculation by modules (floor space, staff, etc.), with deductions and, where applicable, a minimum amount and an annual adjustment |
| Equivalence surcharge (recargo de equivalencia) | Retailers who are individuals and sell goods without transforming them | The supplier charges them an extra surcharge (5.2%, 1.4%, 0.5% or 1.75% on tobacco) and they do not file Form 303 for this activity; their intra-EU purchases and reverse charge transactions are settled with Form 309 where applicable |
| Cash accounting (criterio de caja) | Turnover of up to €2,000,000 in the previous year, with no cash receipts of more than €100,000 from the same client | You declare VAT when you are paid, not when you invoice |
The equivalence surcharge is mandatory for anyone who meets its conditions, and its rates are in Article 161 of the VAT Act. These retailers do, however, declare their intra-EU purchases and their reverse charge purchases, with Form 309, according to the AEAT's 2026 VAT manual. If you have a shop, start with our guide to the equivalence surcharge.
Cash accounting (Articles 163 decies onwards) helps if your clients pay late, because you do not pay VAT you have not yet collected. It has two downsides: the right to deduct the VAT on your purchases arises when you pay for them (or on 31 December of the following year), under Article 163 terdecies.Tres, with four years to use it; and if an invoice is still unpaid on 31 December of the following year, you declare it anyway. The limits are on the AEAT's scheme page. You opt in when you register or in December: to apply it in 2027, the deadline is 31 December 2026.
Filing your VAT: Form 303, Form 390 and the 2026 deadlines
VAT is declared with two forms:
- Form 303: the quarterly or monthly self-assessed return, depending on your situation. The deadlines and the example in this guide are for a quarterly filer. We explain it box by box in how to file Form 303.
- Form 390: the annual summary, filed in January together with the fourth-quarter Form 303. It settles nothing; it sums up the year. Some people are exempt from filing it, as we cover in Form 390.
These are the quarterly Form 303 deadlines, according to the AEAT's 2026 taxpayer calendar and Order EHA/1658/2009, which sets the direct debit rules:
| Quarter | Filing window | If you pay by direct debit |
|---|---|---|
| Q4 2025 (already past) | 1 to 30 January 2026 | By 27 January |
| Q1 2026 | 1 to 20 April | By 15 April |
| Q2 2026 | 1 to 20 July | By 15 July |
| Q3 2026 | 1 to 20 October | By 15 October |
| Q4 2026 | 1 January to 1 February 2027 | By 27 January 2027 |
Why 1 February 2027: the general deadline for the fourth quarter ends on 30 January. In 2026 it fell on a Friday and did not move; in 2027 it falls on a Saturday, a non-working day under Article 30.2 of Law 39/2015, and Article 30.5 moves the last day to the next working day. Filing moves to Monday 1 February, and Article 3 of Order EHA/1658/2009 extends the direct debit deadline by the same two days: from the 25 January in its Annex II to 27 January.
Form 303 is filed online only, on the AEAT's portal (sede electrónica), following the Form 303 instructions for 2026.
Two invoicing changes that are not yet mandatory in 2026:
- VeriFactu. If you fall within the scope of Royal Decree 1007/2023 and use invoicing software, it will have to be adapted; those excluded include, among others, anyone who keeps their VAT record books through the SII. Royal Decree-law 15/2025 postponed it: companies before 1 January 2027, and everyone else, including the self-employed, before 1 July 2027.
- Electronic invoicing between businesses and professionals. See Royal Decree 238/2026. Its deadlines run from Order HAC/1028/2026, in force since 6 October 2026: according to the AEAT's calendar, it is mandatory from 6 October 2027 if you invoice more than €8 million and from 6 October 2028 for everyone else.
Important
If your activity is subject to VAT and not exempt, you file Form 303 even if you had no activity; filing late has consequences even when the result is zero.
Example: VAT for a real quarter, step by step
Laura is a self-employed graphic designer in Valencia, on the general scheme, working for businesses. Here is her third quarter of 2026 (July to September).
Step 1. Her invoices. She invoices €9,000 of taxable base to Spanish clients, all at 21%.
- Output VAT: €9,000 × 21% = €1,890
Because her clients are businesses, they also withhold 15% income tax (IRPF), the standard rate for professionals under Article 95 of the IRPF Regulation. One of her €1,000 invoices works out like this: €1,000 base + €210 VAT − €150 withholding = €1,060 received. The withholding counts towards her IRPF; the VAT goes on her Form 303.
Step 2. Her expenses with VAT.
| Expense | Base | VAT | Deductible? |
|---|---|---|---|
| Software licences (Spanish supplier) | €300 | €63 | Yes |
| Laptop for work | €1,200 | €252 | Yes |
| Coworking, three months | €450 | €94.50 | Yes |
| Professional liability insurance | €120 | Exempt | No VAT charged |
| Lunch with a client, receipt only | €40 | Not shown | No, no invoice in her name |
Deductible input VAT: €63 + €252 + €94.50 = €409.50
Step 3. A reverse charge purchase. Laura pays €200 for ads to a platform based in Ireland, which invoices her without VAT. It is a service from a supplier in another EU country, so she works out the VAT herself: €200 × 21% = €42, and declares it as output VAT (€200 base in box 10 and €42 of VAT in box 11) and, because the expense is 100% deductible, also as deductible VAT (€42). The net effect is zero.
Step 4. The result.
- Total output VAT: €1,890 + €42 = €1,932
- Total deductible VAT: €409.50 + €42 = €451.50
- Form 303 result: €1,932 − €451.50 = €1,480.50 to pay
She has until 20 October 2026 to file it, or until the 15th if she pays by direct debit.
Step 5. What would happen if she filed late. If she files on her own initiative, before any request from Hacienda, on 25 November, she is one full month late: from 20 October to 20 November is one month. Article 27.2 of the General Tax Act sets a surcharge of 1% plus 1% for each full month: 2% of €1,480.50 = €29.61 extra before reductions. If she pays the debt when she files and pays the surcharge on time, Article 27.5 cuts it by 25%: €29.61 × 0.75 = €22.21. After 12 months, it would be 15% plus late-payment interest.
Tip
If Laura sets aside 21% of the taxable base she invoices each month (minus the deductible VAT on her expenses) in a separate account, in October she has the €1,480.50 ready and does not mix it up with her own pay.
How Melso helps
What takes the most time is gathering every invoice each quarter, weeding out the receipts that do not count and remembering purchases from foreign platforms. With Melso you send each invoice on WhatsApp as it comes in, and its professionals prepare Form 303, if it is included for your activity and tax profile, for you to approve before it is filed.
Which VAT you can deduct and which you cannot
Input VAT is only deductible when all of these hold:
- The expense is used for your business. Materials, software, tools, advice, advertising, rent of your premises.
- You have a document for the purchase in your name: a full invoice, a simplified invoice showing your NIF, your address and the VAT amount separately, a valid duplicate or another document allowed by law. This is required by Article 97 of the VAT Act. A till receipt without your details is not enough.
- The expense is used for transactions that give the right to deduct, under Article 94 of the VAT Act. If your activity is exempt under Article 20, as a general rule the VAT on those expenses is not deductible; on exports and intra-EU supplies (full exemptions), it is.
- You deduct it in time: at most, four years from when the right arose (Article 99.Tres).
Common cases with limits: a vehicle used for both work and private life (Article 95.Tres presumes a car is 50% business use, unless proven otherwise, and to deduct more you have to justify it), utilities for a home you also work from, and client entertainment, whose VAT is generally not deductible under Article 96.
Common VAT mistakes
- Spending the VAT you charged. The costliest mistake: that money belongs to Hacienda, so set it aside in a separate account whenever you are paid.
- Not filing Form 303 in a quarter with no invoices. If your activity is subject to VAT and not exempt, the obligation stands even when the result is zero.
- Deducting VAT with a receipt that lacks your details. Without a document in your name, the deduction fails.
- Charging VAT on an exempt activity, or the other way round. If you are a psychologist or teach school subjects, check Article 20 before you issue your first invoice.
- Confusing an exemption with the reverse charge. In both the invoice has no VAT, but the wording is different: the reverse charge and the full exemptions let you deduct the VAT on your expenses if you meet the conditions in Article 94, which covers other cases too.
- Confusing IRPF withholding with VAT. The 7% or 15% withholding is subtracted on the invoice; the VAT is added. They are declared on different forms.
How Melso helps
Melso is your AI tax agent, with human professionals behind it. You send it your invoices and receipts on WhatsApp, it organises your income and expenses, spots what is missing and keeps track of your tax calendar, with reminders on WhatsApp. Melso and its professionals prepare and review the returns included in the scope you signed up for, according to your activity and tax profile; you approve the exact draft in the app and, with the necessary authorisation, the professional files the approved version with the AEAT and you keep the receipt. See the plans and pricing, get started at melso.ai or click Message us on WhatsApp.
This article is for information only and does not replace professional advice for your case. Last reviewed: 12 October 2026.
Sources
- Law 37/1992 of 28 December on Value Added Tax (consolidated text, arts. 20, 84, 90, 91, 94, 97, 99, 161, 163 decies and 163 terdecies), BOE (accessed )
- Royal Decree 1624/1992, VAT Regulation (consolidated text, art. 71), BOE (accessed )
- Royal Decree 1619/2012, Regulation on invoicing obligations (art. 6), BOE (accessed )
- Law 58/2003 of 17 December, General Tax Act (consolidated text, art. 27), BOE (accessed )
- Royal Decree-law 29/2026 of 6 October, urgent housing measures (art. 7), BOE (accessed )
- Taxpayer calendar 2026: filing and direct debit deadlines for self-assessed returns, AEAT (accessed )
- Form 303. Instructions 2026, AEAT (accessed )
- Council Directive (EU) 2020/285, special scheme for small businesses, EUR-Lex (accessed )
- Council Directive (EU) 2020/285 (publication in BOE-DOUE), BOE (accessed )
- Cash accounting scheme: frequently asked questions (when the right to deduct arises and how to use it), AEAT (accessed )
- Royal Decree 439/2007, IRPF Regulation (consolidated text, art. 95: withholding on professional activities), BOE (accessed )
- Royal Decree 1007/2023, requirements for invoicing software (VERI*FACTU), consolidated text after Royal Decree-law 15/2025 (fourth final provision), BOE (accessed )
- Electronic invoicing between businesses and professionals: rollout calendar (Royal Decree 238/2026 and Order HAC/1028/2026), AEAT (accessed )
