Recargo de equivalencia is a VAT (value-added tax) scheme that is mandatory for unincorporated Spanish retailers (i.e. Spanish retailers that do not carry on business through a company or other legally incorporated entity) who do not carry out any kind of processing on the products they sell.
Spanish retailers that are part of this scheme can be identified by their VAT numbers. Faire uses the VAT number of retailers in Spain to determine whether recargo de equivalencia should be automatically added to any order that ships from Spain.
The recargo de equivalencia rate for each product on Faire is determined by the VAT rate selected for that product. These rates are listed below. The applicable recargo de equivalencia rate is shown on both the retailer and the brand’s order invoice.
- A standard rate of 21%
- Recargo de equivalencia rate of 5.2%
- Reduced rate of 10%
- Recargo de equivalencia rate of 1.4%
- Reduced rate of 4%
- Recargo de equivalencia rate of 0.5%
Please review each order before accepting to confirm whether recargo de equivalencia applies.
If the retailer has not provided a valid Spanish VAT ID, Faire cannot calculate or collect recargo de equivalencia, so we recommend confirming whether it should be included before fulfilling an order, as it cannot be applied retroactively once the order has been fulfilled.