How to add and remove VAT
To add VAT, multiply the net amount by (1 + rate/100). At 21%, €100 becomes €121. To remove it from a final price, divide by the same factor: €121 / 1.21 = €100. A common mistake is subtracting 21% from the final price, which gives €95.59 instead of €100.
Spanish VAT rates in 2026
The standard rate is 21%. The 10% reduced rate covers hospitality, passenger transport and new homes, among others. The 4% super-reduced rate covers bread, milk, eggs, fruit, vegetables, books and medicines. The Canary Islands, Ceuta and Melilla use IGIC and IPSI instead of VAT.
Spanish freelancer invoices with withholding
Self-employed professionals invoicing a company or another freelancer must deduct income tax withholding: 15% as standard, or 7% in the year you register and the following two. Both VAT and withholding are calculated on the net amount, never on the total. Choose the withholding option to see what you will actually collect.
VAT in Latin America
Each country has its own name and rate: 16% IVA in Mexico (8% in the northern border region), 19% in Colombia and Chile, 21% in Argentina, 18% IGV in Peru, 18% ITBIS in the Dominican Republic, 7% ITBMS in Panama and 15% IVA in Ecuador. The United States has no federal VAT: each state, county and city sets its own sales tax, so you can enter the combined rate for your ZIP code.