Value Added Tax

The VAT is an indirect tax that applies to purchase a good or service. The percentage varies depending on goods and services. To calculate the VAT did not take into account the income or wealth of the people who must pay.

This tax is applied on the Iberian peninsula and the Balearic Islands. In Navarra and the Basque Country tax has some special characteristics. In Canary VAT is replaced by the General Indirect Tax Canario (IGIC).

The VAT is usually paid by the final consumer. Depending on the type of product or service VAT varies. The overall percentage and the most applied is 16%. The low was 7%, which corresponds to the hospitality and books among others. The super reduced up to 4% and applies for example to vehicles of the disabled.