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Equivalence surcharge (VAT for retailers)

Recargo de equivalencia (IVA de los comerciantes minoristas)

What it is

It is a special VAT scheme for retailers who are individuals (or entities under income attribution, such as joint ownerships of individuals), unless they sell certain products (for example, vehicles, jewellery, works of art, used goods, industrial machinery or building materials). A retailer is someone who habitually sells goods without processing them, provided that in the previous year sales to final consumers exceeded 80 % of the total; if the activity was not carried on that year, or income tax is paid under objective estimation and the person is registered as a retailer in the IAE, the percentage does not apply. Suppliers charge VAT plus the surcharge on the invoice, separately: 5.2 % for goods at 21 %, 1.4 % at 10 % and 0.5 % at 4 %. In return, the retailer pays no VAT for the activity and files no VAT returns for it (except for intra-EU acquisitions, reverse charge or property sales, with form 309). The retailer must prove to suppliers that they are in this scheme.

Official wording
En el régimen de recargo de equivalencia el comerciante no está obligado a efectuar ingreso alguno por la actividad

Official sources

Where it applies
All of Spain

Official information

Official sources

Go to the official website: Equivalence surcharge at the Agencia Tributaria

When

It applies to retailers who are individuals (or joint ownerships of individuals) who habitually sell without processing the goods and whose sales to final consumers exceeded 80% of the total in the previous year, except for certain goods (vehicles, jewellery, art, used goods, industrial machinery, building materials, etc.).

Official wording
siempre que las ventas a consumidores finales durante el año precedente fueran superiores al 80% de las ventas totales realizadas.

Official sources

Steps

  1. Step 1: Prove the scheme to your suppliers

    You must prove to your suppliers (or Customs) that you are under the equivalence surcharge, so they charge it to you.

    Official wording
    Acreditar ante los proveedores o ante la Aduana, el hecho de estar sometido al recargo de equivalencia

    Official sources

  2. Step 2: Pay VAT and surcharge on purchases

    The supplier charges you VAT on the invoice and, separately, the surcharge: 5.2% on goods at 21%, 1.4% at 10% and 0.5% at 4%. The supplier must issue a separate invoice showing the surcharge rate and amount.

    Official wording
    Artículos al tipo general del 21%: recargo del 5,2%

    Official sources

  3. Step 3: Sell without filing VAT

    You pay no VAT for the activity and file no VAT returns for it; only form 309 for intra-EU acquisitions, reverse charge or property sales.

    Official wording
    No hay que presentar declaraciones del IVA por las actividades en este régimen especial.

    Official sources

    Go to the official website: Equivalence surcharge at the Agencia Tributaria

FAQ

Must I issue invoices to customers?

For VAT, generally not, with exceptions (for example, if the customer is a business or needs it for a tax right). But if you pay income tax under direct estimation, you must issue invoices anyway; retail sales up to €3,000 (VAT included) can use a simplified invoice.

Official wording
en el supuesto de tributar en el IRPF por estimación directa, estarán obligados, en todo caso, a efectos del IRPF , a expedir facturas

Official sources

What books must I keep?

For VAT no books are required, unless you also have activities in other schemes; you do keep those required by income tax under direct estimation.

Official wording
No existe obligación de llevar libros por este impuesto

Official sources

I sell to tourists with VAT refunds

To recover what you refunded to travellers, you file form 308.

Official wording
se presentará el modelo 308

Official sources

Related procedures

Terms used on this page