Prices, VAT (IVA) and tax-free refunds when shopping

Terms used

• IVA — IVA is Spain's value-added tax, already included in the prices you pay in shops.
• IGIC — IGIC is the Canary Islands' own indirect tax, used instead of IVA.
• IPSI — IPSI is the local indirect tax used in Ceuta and Melilla instead of IVA.
• AEAT — The AEAT is Spain's tax agency, the Agencia Tributaria.
• DIVA — DIVA is the customs system with automated kiosks where you validate your tax-free form before leaving the EU.

Key rules

• Shelf price: The price shown to consumers already includes IVA, with any extra charges shown separately.
• Who can claim: Only visitors living outside the EU, and not in the Canary Islands, Ceuta or Melilla, can claim a refund.
• Invoices: Each invoice is judged on its own, so small purchases cannot be added together.
• Validation: Validate the form at the DIVA kiosk before you check in bags, with the goods unused and ready to show.

Is IVA already in the price?

Yes. The price you see on the shelf, tag or menu for consumers is the final price. It includes IVA and all other taxes. Any extra charge, such as delivery, must be shown separately. Prices aimed at businesses may be quoted without IVA, but this must be clearly stated.

Which IVA rate applies?

On the mainland and in the Balearic Islands, there are three rates:

• 21% on most goods and services, such as clothing, electronics, furniture, cars and alcohol.
• 10% on the reduced rate. This covers most foods that are not basic, restaurants and hotels, passenger transport, new homes and water supply.
• 4% on basic foods (bread, flour, milk, eggs, fruit, vegetables, cheese), books, newspapers, medicines for human use, and prostheses and some aids for disabled people.

The Canary Islands use a different tax, called IGIC. Ceuta and Melilla use IPSI. Rates for particular products can change, so check the exact product with the tax agency, the AEAT.

Can you get your IVA back?

Only some visitors can. You can claim if you live outside the EU. You must not live in the Canary Islands, Ceuta or Melilla. You must also be over 16 and hold a passport that proves where you live.

The goods must be:

• for personal use,
• bought in a shop that takes part in the scheme,
• unused, and carried out of the EU in your luggage.

Each invoice must be above 90.15 euros with IVA included, and the goods must leave the EU within 3 months of the month of purchase. Each invoice counts on its own. You cannot add several small purchases together.

Business goods, vehicles and boats are excluded. If you live in Spain or elsewhere in the EU, you cannot claim.

How the refund works

Ask the shop about the scheme before you pay. At the till, ask for the tax-free form and show your passport. The shop fills it in with your details and the invoice.

Before you check in your bags, validate the form at the DIVA kiosk at your departure airport or border. A green result means it is validated. A red result means you go to the customs desk. Customs may ask to see the goods, so keep them in your hand luggage.

If you leave the EU through another country, validate and claim there.

Then collect your refund through the provider named on the form. You can usually take cash at a refund counter, have it credited to a card, or get a later bank transfer. The provider deducts fees, so compare the options.

The steps, documents and checklist below go through this in order.

Timeline and deadlines

• Ask the shop for a tax-free form and show your passport: when you buy

• Keep the goods unused and ready to show to customs: from purchase until you leave the EU

• Validate the form at a DIVA kiosk, the automated customs terminal: before checking in bags, at the airport or border in the last EU country

• Claim your refund through the provider named on the form: after validation

Documents you need

• Your passport, which proves you live outside the EU. You show it to the shop when you buy and you must be over 16.

• A tax-free form (a DIVA document), filled in by the shop with your details and the invoice. Ask for it at the till when you buy.

• The invoice for each purchase, above 90.15 euros with IVA included. Each invoice counts separately.

Checklist

• Check that you live outside the EU and not in the Canary Islands, Ceuta or Melilla.

• Ask the shop whether it takes part in the tax-free scheme before you pay.

• Make sure each invoice is above 90.15 euros with IVA included.

• Keep the goods unused in your hand luggage so you can show them at customs.

• Choose your refund method with the provider named on the form and check its fees.

Frequently asked questions

Does the price on the shelf already include IVA?

Yes, the price shown to consumers in a shop must be the final price including IVA and all other taxes. Any extra charges must be shown separately. Offers between businesses may quote prices without IVA if this is clearly stated.

Can I get an IVA refund if I live in the Canary Islands?

No, people resident in the Canary Islands, Ceuta or Melilla cannot use the visitor refund. The Canary Islands also use a different tax, called IGIC, and Ceuta and Melilla use IPSI, so rates there differ from mainland Spain.

Can I add several small purchases together to reach the refund minimum?

No, each invoice is treated separately, so purchases cannot be added together.

What happens if the DIVA kiosk shows a red result?

If the DIVA kiosk shows red, go to the customs desk to have your form validated. Keep the goods with you, because customs may ask to see them.

Can I get a refund on a car or goods for my business?

No, vehicles, boats, commercial goods and goods for business use are excluded from the refund. Only goods for personal use carried in your luggage qualify.