Which VAT scheme do I have: standard, equivalence surcharge, exempt or módulos
How to know which one applies to you based on your activity.
In a nutshell
- Most self-employed people are under the standard VAT scheme: you charge VAT on your invoices and file it every quarter.
- Shops selling to the public usually go under the equivalence surcharge, and some activities under módulos.
- Healthcare, education and other activities are VAT exempt.
When you register you have to state your VAT scheme. You can't choose it completely freely: it depends on your activity and, sometimes, on who you sell to.
The most common schemes
- Standard scheme: you charge VAT on your invoices, deduct the VAT on your expenses and file the difference every quarter. It's the one most people have.
- Equivalence surcharge (recargo de equivalencia): for individual retailers who sell to the public without transforming the product. Your supplier charges you a surcharge and you don't file VAT.
- Simplified scheme (módulos): for some activities on the list in the provincial order. You pay based on data about your business, not on invoices.
- Exempt: activities such as healthcare, regulated education or some social services don't carry VAT.
- Agriculture, livestock and fishing: they have their own special scheme.
How to know which one applies to you
- 1Your activityThe IAE heading already says a lot: a shop, a professional, an exempt activity…
- 2Who you sell toFor example, a shop that mainly sells to businesses may go under the standard scheme instead of the surcharge.
- 3Whether your activity is under módulosIf it's in that year's provincial order and you don't opt out, you go under módulos.
We ask you. When registering, we ask you two or three simple questions based on your activity and tell you which scheme applies, with an explanation.
Frequently asked questions
Can I be under two schemes at once?
Yes, if you have different activities. For example, a shop under the equivalence surcharge and a professional activity under the standard scheme.