The VAT you charge is not yours: you collect it on behalf of the tax agency. Form 303 is the quarterly filing where you settle up: you compare the VAT you have charged with the VAT you have paid, and pay (or carry forward) the difference.
The mechanics: output minus input
- Output VAT: what you add to your sales invoices. Invoice €6,000 at 21 % and you charge €1,260.
- Deductible input VAT: what you pay on purchases tied to your activity. Spend €1,500 at 21 % and you bear €315.
- Result: output − input. In the example, €945 payable.
Try your own numbers in the quarterly VAT calculator.
Spanish VAT rates
| Rate | % | Typical examples |
|---|---|---|
| Standard | 21 % | Most goods and services (including professional services). |
| Reduced | 10 % | Hospitality, passenger transport, certain foods. |
| Super-reduced | 4 % | Staple foods, books, medicines. |
| Exempt | 0 % | Regulated education, healthcare, insurance. |
Mind exempt activities: if yours is exempt (e.g. regulated education), you do not charge VAT — but in general you cannot deduct the VAT you bear either (or only a share, via pro-rata).
When it is filed
From the 1st to the 20th of April, July and October (quarters 1–3) and from the 1st to the 30th of January for the fourth quarter, together with the annual summary (form 390). Weekends and holidays push the deadline to the next working day, and direct debit shortens it by a few days. All dates live in the tax calendar.
What if it is negative?
If you bore more VAT than you charged (slow quarter, big investment), the result is carried forward to the following quarters. In the fourth quarter you may request a refund instead of carrying it forward.
Common mistakes
- Spending collected VAT as if it were income (set it aside: it is not yours).
- Deducting VAT on personal expenses or without a full invoice.
- Forgetting the fourth quarter is due 30 January, not the 20th.
- Skipping a "zero" quarter when there was no activity (the obligation remains).
