IPSI Calculator
Tax on Production, Services and Imports, IPSI
Spain, Melilla: IPSI, higher: 10% 8% 7% 5% IPSI: 4% IPSI, reduced: 3% 2% 1% 0.5%
Tax calculator needs two values. You can e.g. fill in tax % and price - and get price before tax as result. Price before tax and price are rounded.
You can also choose the tax % by clicking the percentage in the table below.
Spain, Melilla | |
| IPSI, higher | 10% Construction and building works unless the 0.5% or 4% provisions apply. Goods marked 10% in the tariff, such as many vehicles, jewellery and furniture. Postal H7 consignments below EUR 150 use 10% where no Combined Nomenclature heading is declared; otherwise the rate for the declared heading applies. EUR 150 is not a tax-free allowance. 8% Telecommunications, radio broadcasting and television services. Electronic services as defined in VAT legislation have their separate 0.5% rate. 7% Goods marked 7% in the tariff, including specified chemicals, base-metal articles and household textiles. Heading 9619 covers sanitary towels, tampons and nappies at 7%. 5% Goods marked 5% in the tariff, including clothing in Chapters 61 and 62 and vehicles under the specified petrol subheading below 1,600 cm³ or diesel subheading below 2,000 cm³. |
| IPSI | 4% General rate for taxable, non-exempt services and property supplies. Also applies to construction of buildings mainly intended for housing that does not qualify for 0.5%, and to renovation, adaptation, redistribution, improvement or reconstruction of completed homes and business premises. For goods, applies to tariff headings marked 4%, including specified seeds and oil seeds. |
| IPSI, reduced | 3% Specified tariff vehicle categories, including petrol and diesel hybrids under 8703 40 and 8703 50 excluding mild hybrids (MHEV), plug-in hybrids under 8703 60 and 8703 70, and hydrogen fuel-cell or petrol/CNG/LPG vehicles under 8703 90. The exact tariff classification determines the rate. 2% Restaurants rated two forks or higher, special-category cafés and bars, and other hospitality services, including hotel accommodation. 1% Electricity consumption, taxi passenger transport, one-fork restaurants and other cafés and bars outside the 2% category. 0.5% Goods classified at 0.5% in the import tariff, for example wholly electric passenger cars under subheading 8703 80. Collective land passenger and luggage transport, advertising and marketing, electronic services, ancillary management services for activities subject to gambling taxes, and hire of means of transport. Also the developer’s first supply of officially protected housing, including jointly supplied annexes and up to two garage spaces. For construction, direct developer–contractor contracts for buildings mainly intended for housing and a subsequent first supply; at least 50% of the constructed area must be residential. This construction rate does not make the subsequent sale of ordinary housing taxable at 0.5%. |
IPSI is distinct from mainland Spanish VAT. Goods rates concern production/processing and importation, not automatically every resale. The general service rate is 4%; goods follow their tariff classification, so there is no universal rate for every product. The 4% and 0.5% rates appear in more than one category because goods and services use different scales. Examples do not replace the tariff. This calculator applies a percentage to an already established taxable base; it does not determine import value, modules, reliefs or supplementary tobacco and fuel levies, which may form part of the IPSI base.
| Past changes: | |
| 1 Feb 2022 | The new import ordinance and tariff take effect. They regulate, among other matters, postal H7 consignments below EUR 150: 10% without a declared tariff heading, or the rate for the declared heading. They do not create a general exemption for these consignments. BOME — Ciudad Autónoma de Melilla |
| 5 May 2021 | The amended domestic ordinance takes effect, listing hire of means of transport among services taxed at 0.5%. BOME — Ciudad Autónoma de Melilla |
Note! The VAT information on this page is general information, not tax advice. The information is not exhaustive. VAT rules include many exceptions and special cases. Check the treatment of your situation in the IPSI rules of the Autonomous City of Melilla. Information last checked 30 Sep 2026.
Articles:
VAT rounding: the EU, the UK and other European countries
The EU VAT Directive and the Court of Justice of the European Union leave VAT rounding rules to be decided at national level. National rules vary. In the UK, HMRC allows VAT on B2B invoices to be rounded down to the nearest whole penny.
Roundings in VAT calculation: Mathematically impossible prices?
There are a whole range of VAT-inclusive prices that cannot be mathematically arrived at if the tax is calculated from the VAT-free price. One example is 3.99. These prices are also possible, but then the VAT-free price must be interpreted as rounded.
VAT Gap - How much VAT is left uncollected in EU countries?
9.5% of VAT was left uncollected in EU countries. See the list of EU countries and candidate countries.
In Europe there is VAT - in the US sales tax
In Europe, companies belonging to the production chain account for the VAT paid by the consumer to the state in proportion to their value added. The US sales tax, on the other hand, is billed entirely by the company that made the consumer sale. Sales tax is paid to local operators, not to the state.
Many of today's taxes were already in use in Antiquity. Deciding on taxation has moved from autocrats to parliaments and the level of taxation has risen. In earlier times taxes were used to wage wars, today taxes are used to maintain welfare states.