On a day-to-day basis, taxes are part of our daily routine, even if you don't realize it. However, we pay taxes, both direct and indirect taxes. For example, when you buy something in a store, or when you buy a used car, or a home from someone else. Yes, they are everyday things that we can do throughout life and that you may not know that you are paying indirect taxes with it.
But What are indirect taxes? Because they exist? And, above all, which ones exist? All this and much more is what we are going to tell you next.
What are indirect taxes
Taxes can be divided into two large groups, direct and indirect. The latter are conceptualized as those that indirectly tax economic capacity. In other words, indirect taxes are those that are paid for the consumption, traffic or production that takes place. In this case, it will depend on the product itself, and not on the people, hence they are indirect, because it is for the use of that product that must be paid.
For example, imagine that you go to a travel agency and decide to hire a package to go to the United States. This product is "taxed" with an indirect tax, which you pay through the so-called VAT. Yes, that is one of the best known taxes, but the truth is that there are some more that you may not know.
Why do indirect taxes exist
The big question you can ask yourself now is the reason why a person, who already pays for a product, also has to pay an indirect tax. In fact, it is something that many people might think since we are talking about money that is paid without the person who sells it being able to enjoy it.
All indirect taxes are part of the state funding, and they serve to raise money. The Tax Agency itself has also been in charge of justifying the collection of this money in the following way: it is a tax that must be collected because the consumption of those goods that are acquired generate social costs that must be borne. In this case, some of these costs are more visible, such as tobacco or alcohol. But in others it is more difficult to understand.
Indirect taxes paid in Spain
However, as indirect taxes we do not have only VAT. In reality, there are more taxes you are paying than you are doing without realizing it. Therefore, we have made a compilation of what they are and we are going to explain a little more detail about each of them.
Value Added Tax (VAT)
The value added tax, better known as VAT, is what everyone knows and is more or less aware that they have to pay it. For example, when you buy something, or when you request the services of a job, the VAT goes within the price to be paid (unless otherwise stated).
In Spain We have three types of VAT, the super-reduced one of 4%, the reduced one of 10% and the usual one, which is 21%.
Its tax always falls on the final consumer, that is, the one who is going to enjoy the service or product. However, it is up to those who carry out the work, or who sells that product, to collect this tax and then pay it to the Treasury. Do you mean that all VAT is for the Treasury? No, the VAT that a business needs to carry out its activity can be deducted.
In other words, just as consumers pay a VAT, companies also do it, so that afterwards the VAT charged by the one paid is deducted, entering the difference.
Transfer tax and stamp duty
Another of the best known within indirect taxes is that of property transfers and documentary legal acts.
What it does is tax the circulation of goods and rights, as well as the expense or income that we have. For example, imagine that you have a house, or a car, and you want to sell it. Well, in these cases, VAT is not paid, but this tax is paid, which is roughly the same.
Currently, it is the Autonomous Communities themselves who are in charge of regulating this tax, so depending on where you live you can pay more or less of it.
However, it not only acts when there are transfers, that is, the sale of goods, rights ... but it can also be applied in company operations and even in acts that have to be officially documented, notary documents, etc. And as with VAT, the person who must pay the tax is the one who acquires it, not the seller.
Customs Income
This tax is regulated by Regulation (EU) 952/2013 of the European Parliament and of the Council, of October 9, 2013, which approves the Union Customs Code.
What gravel? Well, the merchandise, both what is imported and what is exported from Spain. For example, imagine that you sell something to another country, because you have to pay a tax (this) for having made that sale (in addition to all the taxes that you must pay in addition to this).
Special taxes
Excise taxes, by their nature, are only paid by people who buy certain specific goods. Of course, it must be borne in mind that they may be subject to two taxes, the VAT and also the special tax.
What products are we talking about? Well, specifically we are referring, to give you examples, tobacco, alcohol or alcoholic beverages in general, hydrocarbons or the registration of means of transport.
Local taxes
Lastly, we have the local taxes. They are those that the City Councils or Provincial Councils can demand from people. Also here the regional taxes would be included.
An example of them? Sure you know them very well: the tax on mechanical traction vehicles, better known as a road tax (yes, for having a car, motorcycle, caravan ... and driving around Spain they make you pay for it); or the real estate tax, better known as IBI (which you pay because you own a home).