In Spain, the VAT (value-added tax) or Impuesto sobre el Valor Añadido (IVA) is classified in four stages:
- General: 21% on all goods and services by default (electronic devices, legal assistance, clothing, hairdressing, etc.)
- Reducido: 10% on transport, cultural events, hotels and restaurants, sanitary products, non-basic foods, rubbish collection.
- Superreducido: 4% on essential foods, medicine, books, disability equipment.
- No IVA: some services are VAT exempt such as health assistance, insurance, education, social and community services.