Spanish Value Added Tax

[Mountain Goat]

It's VAT in the UK.

TVA in France and Switzerland

What is VAT in Spain, please? I'm trying to deal with a Spanish punter.

Thanks.

MG

[Guest3]

MG....It's IVA and the rate here in Spain is 16%.

[Mountain Goat]

Many thanks, much appreciated, just what I need.

MG

[CSE]

The IVA rate varies here in Spain. For example a Hotel business charges 7% to its customers. That is for all services, even alcoholic drinks. However we pay for most goods at a rate of 16%, including alcoholic drinks. We can't figure that out either! Some goods are charged at 4% like milk. But we would charge, if a customer so wished it than we would charge them at 16%. Most food is charged at 7%
Hope that clears up the picture a bit!

[ashtondav]

My local electrical store charges 16% IVA if you pay by card. However if you pay by cash there is no IVA.

The two receipts are exactly the same.One simply is 16% less.

I guess its a discount for cash

[Marks]

And probably doesn't go through "the books"

Strangely, I recently ordered some stuff online from an Italian company who gave a discount for paying by credit card

[cc]

I used to eat in a Chinese restaurant in Basingstoke that gave a 5% discount for paying in cash, I wonder if the VAT man knew!

[CSE]

My local electrical store charges 16% IVA if you pay by card. However if you pay by cash there is no IVA.

The two receipts are exactly the same.One simply is 16% less.

I guess its a discount for cash

yep that means it does not go through the books...Black money!

[Mountain Goat]

Apologies for dragging this one up again, but Spanish clients are now supplying CIF numbers.

Is CIF the same as IVA?

Nothing to do with rentals.

MG

[Marks]

CIF (Certificado de Identificacion Fiscal): This is the tax ID number for all companies. It consists of a letter followed by 8 digits. The letter represents the type of company, the most common being an 'A' for Sociedad Anonima or a 'B' for Sociedad Limitada.

[Mountain Goat]

Great, thanks. So nothing to do with IVA.

MG

[pepsipuss]

Bit odd that they are supplying CIF numbers as these are (as Marks says) company tax ID numbers. The personal equivalent is the DNI (ID number). We always ask for these because everyone asks for them, however simple a transaction you are trying to carry out, and most Spaniards would be suspicious if you didn't want it! We supply ours (which is actually a NIE - a number that serves the same purpose but is for foreigners, either resident in Spain or with a property or even just a bank account in Spain - you can't have one without one) to our clients as it gives them a degree of reassurance that we are reasonably legitimate.

[cc]

Most legal businesses in Spain are probably being extra careful with such things as getting the correct ID on all receipts as there is a massive clampdown by the Spanish tax authorities at the moment. According to our accountant it is a response to the "bad" old days when the black economy was depriving the state of huge amounts in unpaid taxes. Now the economy is down the toilet they are screwing evey penny they can out of all legitimate tax payers using a "reject it first and see if they complain" method instead of the old ploicy of "as long as they pay us some tax we won´t take it any further".
We have been in dispute with them for a year over expenses that were allowable in 2007 but are not in 2008/9. We will win our case at tribunal level but they are prepared to let it go that far presumably hoping that we will give up.