1E9Ct5D

Taxable eventsThe following transactions are subject to the tax, when carried out by traders or professionals inthe course of their business activities:1 Supplies of goods, generally defined as transfers of the right to dispose oftangible property, although certain transactions that do not imply such transferalso may be treated as supplies of goods for the purposes of the tax;2 Intra-EU acquisition of goods (in general, acquisitions of goods dispatched ortransported to the Spanish VAT territory from another Member State).3 Imports of goods, these transactions being subject to the tax regardless ofwhether or not the importer is a trader; and4 Supplies of services.Value Added Tax Rates and ExemptionsThe standard VAT rate is 21 %, applicable to most sales of goods and services.A reduced rate of 10 % is applicable, amongst others, to sales and imports of:1 Human and animal foodstuffs, except alcoholic beverages;2 Water;3 Pharmaceutical products; and4 Private homes.5 Theatres and cinemas.VAT applies to the following services:1 Domestic transportation of passengers and their luggage;2 Hotels; and3 RestaurantsThere is a reduced VAT rate of 4% applicable to:1 Bread, flour, milk, cheese, eggs, fruits and vegetables;2 Books, newspapers and magazines not mainly containing advertising;3 Pharmaceutical specialties;4 Automobiles of handicapped people;5 Prostheses of handicapped people; and6 Certain officially sponsored housing.Following the EU model, certain transactions are VAT-exempt (e.g., supplies of goods andservices relating to insurance and financial activities, health, education and rental of residentialproperty). As these transactions imply that no VAT is charged by the trader, their performancedoes not qualify for the right to deduct the VAT borne as described below.33