Sales Tax

Sales tax, now called IVA (Impuesto al Valor Agragado), is 13% of all goods or services. Professional fees to doctors, lawyers, dentists and other independent professionals, commercial rentals or leases, even real estate sales commissions are subject to this tax.

In restaurants the bill can be 23% more than the menu price if tax & tip are not included on the menu. The 13% sales tax is charged, plus a tip of 10%. If you have particularly good service a little extra can be left, but remember that the tip is included in the price of the meal. Many restaurants have two columns, one for the inclusive price and the other for the price without tax and tip. IVI on prices stands for impuesto de ventas incluido, or sales tax included.

Sales tax on doctors is 4%. The tax on medicines and their ingredients is 2%

Sales tax on production machinery & equipment, personal insurance premiums, private education. some foods, agricultural, veterinarians and non-sport fishing supplies - 1%

Engineers, architects, surveyors, construction services, tourism (excluding hotels), collection services, storage of recyclable and reusable goods have a tax of 4%, but will be increased on July 1, 2021 to 8% then on June 30, 2022 to 13%