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Company Formation Spain



Reduced VAT Rate for Spanish Cultural Activities

Written by: Editor

Reduced-VAT-Rate-for-Spanish-Cultural-Activities.pngOpening a company in Spain in the field of cultural activities could have positive effects on the business itself, as the Spanish government announced that the value added tax (VAT) applicable to companies carrying out this type of activities will be reduced. The policy is aiming at increasing the market value of this field and it is offered as an incentive for businessmen interested in this domain. Our team of company formation representatives in Spain can offer in-depth advice on the tax regulations applicable in this jurisdiction. 

VAT for cultural activities in Spain 

Several years ago, in 2012, the VAT applicable to the cultural activities and products in Spain was increased at the standard rate applicable at that moment - 21% - due to the economic difficulties experienced by the country. 
However, the measures taken by the local government had a positive effect on the local market and, at the moment, the Spanish authorities have decided to lower the VAT imposed for cultural activities. Businessmen interested in company formation in Spain in this sector should know that the VAT will be lowered to 10%
Spains applies several categories of VAT, which can be further detailed by our team of consultants in company formation in Spain

VAT rates in Spain 

The procedure of company registration in Spain stipulates that all commercial activities are to be imposed with a designated VAT rate
In Spain, there are four categories of  VAT, as mentioned below: 
21% - the standard VAT rate, applicable to most of the goods and services traded on the local market;
10% - reduced VAT rate, applicable to a specific categories of goods, such as foodstuffs, water, pharmaceutical products, passenger transportation (by land, rail or water), accommodation industry, catering industry and others;
4% - reduced VAT rate, available for certain foodstuffs and pharmaceutical products, books, newspapers and magazines, as well as for a special category of social services;
0% - applicable in the case of international transportation by air or by sea, performed within the European Union’s borders. 
Businessmen are invited to contact our team of agents in company registration in Spain for more details on the Spanish VAT rates.  

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