Italy vs Spain — VAT Comparison 2026

    Mediterranean economies VAT comparison.

    CriteriaItalySpain
    Standard Rate22%21%
    Reduced Rates4%, 5%, 10%4%, 10%
    Registration Threshold€65,000 (flat-rate scheme)No small business exemption
    CurrencyEUREUR
    Filing FrequencyQuarterly with monthly optionQuarterly with annual summary

    Key Differences

    Italy has a standard VAT rate of 22% compared to 21% in Spain. This means businesses in Italy collect more VAT on standard-rated supplies.

    Registration thresholds differ significantly: €65,000 (flat-rate scheme) in Italy vs No small business exemption in Spain. This affects when small businesses must start charging and collecting VAT.

    Penalties Comparison

    Italy

    30% penalty for late payment, reduced to 15% if paid within 90 days. Criminal penalties for large-scale fraud.

    Spain

    5-20% surcharge for late filing depending on delay. Interest charges on late payments.

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