Taxes and payment
There are usually two methods of paying taxes in Spain. One is by the NRC code and another one is a bank transfer made from a foreign account. NRC code is generated as a proof of tax income identification. It is a very safe method because it is a set of 22 alphanumeric characters that are encrypted. Moreover, NRC uses detailed information such as: NIF of the declarant, the amount, the model, the fiscal year. It is worth noting that when using this method, data reported at the time of payment must be correct. NRC is also necessary when direct debt was not selected as a payment method. Only through NRC it is later on possible to file the return.
VAT returns in Spain
According to the general tax return rule in Spain, frequency of filing VAT returns is quarterly. There are four quarterly periods and it is very easy to remember them as they represent quarters of the calendar year. The first quarter is January to March, the second is April to June, the third is July to September while the last quarter is October to December. Please note that in Spain no annual periodicity is known.
IVA standards
VAT in Spain is known as IVA or Impuesto sobre el Valor Añadido. There are the following VAT rates: standard rate and reduced rates. Standard rate is 21% while reduced rates may vary from 10% to 4%. The latter rate is for basic life needs with special care of pharmaceutical products and medical equipment, especially for disabled patients. In Spain, there is a 10% VAT for water supplies, food and passenger transport. Not only basic needs are in such rate but also restaurants, hotel accommodations and cultural services. On the other hand, not much higher, 21% rate is for childrens car seats, books and ebooks and also for medical and dental care. Third VAT rate in Spain is known as super-reduced rate and it includes mostly medical needs like specific type of food, social services and pharmaceutical products. For more information please visit the website https://polishtax.com/vat-in-spain-brief-introduction/.
