Reduced tax rate of 10 percent

The 10 percent rate applies to the following transactions:

1. Deliveries, intra-community acquisitions and imports of the following goods, as well as the execution of works that are considered to be the provision of services and which result immediately in the obtaining of these goods:

   • Substances or products that are likely to be, habitually and appropriately, used for human or animal nutrition, as well as animals, plants and other products likely to be used, habitually and appropriately, to obtain these products.

     As of January 1, 2021, beverages containing added sweeteners, both natural and sweetening additives, are excluded from this concept and will be taxed at the general tax rate of 21 percent.

     From 1 January to 31 December 2023, olive and seed oils and pasta are excluded from this concept, the tax rate of which is reduced to 5 percent.

   • Certain assets that may be used in agricultural, forestry or livestock activities.

   • Waters suitable for human or animal consumption or for irrigation.

   • Medicines for veterinary use.

   • Pharmaceutical products included in Chapter 30 "Pharmaceutical products" of the Combined Nomenclature, susceptible to direct use by the final consumer, other than veterinary medicines and those to which the 4 percent rate applies.

     Medical equipment, devices and other instruments, listed in section eight of the annex to the Tax Law, which due to their objective characteristics are designed to alleviate or treat deficiencies, for personal and exclusive use by persons with physical, mental, intellectual or sensory deficiencies, without prejudice to the goods for which the application of the 4 percent rate is specifically provided.

     This category of goods does not include other accessories, spare parts and replacement parts for said goods.

   • Buildings or parts thereof suitable for use as dwellings, including garages, with a maximum of two, and annexes that are transferred jointly.

   • Flowers, live ornamental plants, as well as seeds, bulbs, cuttings and other products of exclusively plant origin that can be used to obtain flowers and live plants.

2. The following services are provided:

   • Transport of passengers and their luggage.

   • Hospitality, camping and spa services, restaurants and, in general, the supply of food and drinks for immediate consumption, even if they are prepared upon request of the recipient.

   • Mixed services such as hospitality, shows, discos, party halls, barbecues or other similar services are not expressly exempt from the reduced rate.

   • Certain services provided to owners of agricultural, forestry or livestock farms.

   • Cleaning services for public streets, parks and public gardens.

   • Services for the collection, storage, transportation, recovery or disposal of waste, cleaning and pest control of public sewers and the collection or treatment of waste water.

   • Entrance to libraries, archives and documentation centres, museums, art galleries, art galleries, theatres, circuses, bullfights, concerts, and other live cultural events. This reduced rate also applies to admission to movie theaters.

   • Social assistance services that are not exempt from or subject to the 4 percent rate.

   • Amateur sporting events.

   • Trade exhibitions and fairs.

   • Execution of renovation and repair works carried out in buildings intended for housing that meet certain requirements.

   • Leases with an option to purchase buildings or parts thereof intended exclusively for housing, including parking spaces, with a maximum of two units, and annexes located therein that are rented jointly.

   • The transfer of rights to use buildings, real estate complexes or architecturally distinct sectors of them in turn when the property has at least ten accommodations, in accordance with the provisions of the regulations governing these services.

   • Those provided by performers, artists, directors and technicians, who are natural persons, to producers of cinematographic films likely to be exhibited in theaters and to organizers of theatrical and musical works.

3. The execution of works, with or without contribution of materials, that meet the following requirements:

   • That they are a consequence of contracts directly formalized between the promoter and the contractor.

   • Those whose purpose is the construction or rehabilitation of buildings or parts thereof intended primarily for housing.

4. Sales with installation of kitchen, bathroom and built-in cabinets, when certain requirements are met.

5. The execution of works, with or without the contribution of materials, as a result of contracts directly formalized between the communities of owners of the buildings referred to in point 3 and the contractor whose purpose is the construction of complementary garages, provided that the number of spaces to be awarded to each of the owners does not exceed two.

6. Imports of works of art, antiques and collector's items, as well as intra-community deliveries and acquisitions of works of art when the delivery is made by their authors or successors in title and non-reseller businessmen with the right to a full deduction of the tax incurred.

7. From June 26, 2021 to June 30, 2022, for electric energy contracts whose fixed term power does not exceed 10 kW, a reduction from 21 to 10 percent is established in the tax rate of VAT that falls on all the components of the electricity bill, when the average monthly price of the wholesale market in the month prior to the billing has exceeded €45/MWh.

   The VAT tax rate applicable to the electricity bill of holders of electricity supply contracts who are recipients of the social bonus, and also have recognized status as severely vulnerable or severely vulnerable at risk of social exclusion, is also reduced to 10 percent. , during the period referred to in the previous paragraph, regardless of the price of electricity in the wholesale market.

   From July 1, 2022 to December 31, 2023, the 10 percent tax rate referred to in this section is reduced to 5 percent.