Sometimes making an invoice can be somewhat confusing for the entrepreneur, especially if he must add several products or services that have different VAT rates to it. It should be remembered that three different VAT rates are being applied in Spain: 21%, 10% and 4%.
VAT of 21% is one of the most common and is usually applied to goods and services such as fuel, clothing, telephony or DIY, for example.
For its part, the 10% VAT applies exclusively to restaurants, hotels, transport, feminine hygiene products and cultural activities, among others.
As for the super-reduced VAT, 4%, it is usually applied to goods or services considered essential, essential food, essential medicines, vehicles for the disabled or home help.
Take into account the main activity
Companies must also take into account when making the invoice if they are ancillary products or services, that is, those that do not represent an end as such for the customer, but are a means to enjoy the product or service in better conditions. In these cases, these products or services do not appear with their own VAT on the invoice, but the same VAT rate is applied to everything, which is that of the main product or service.
When making the invoice from Getquipu, they point out that in the case of having to include products with different VAT rates, it will be necessary to determine what is the central product or service, which will determine the VAT, and what is the accessory.
For example, if it is a bar, whose main service is food, VAT of 10% will have to be applied, which is associated with restaurant services. However, if there are alcoholic beverages in the account, which have a VAT of 21%, the VAT that will have to be applied to them will be 10%.
The explanation is simple, when preparing invoices with products or services with different VAT rates, you must take into account to which category each product or service belongs and what is the main activity that is provided.