VAT on Spanish SIM cards

NFH · **VAT on Spanish SIM cards -** 05-07-2012, 17:24

I notice that Spain has multiple levels of VAT:

18% in mainland Spain and the Balearics
7% in the Canary Islands
8% in Ceuta
4% in Melilla

The Spanish mobile networks therefore advertise their prices excluding VAT as well as multiple prices for each region including VAT.

How does this work in practice? For example, is VAT charged based on where the usage takes place or where the customer is based? If it's the latter, what's to stop everyone from registering as being based in Melilla?

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NFH (Offline) Senior Member Prepaid Expert Posts: 322 Join Date: 11 Apr 2012 Location: London Country:	VAT on Spanish SIM cards - 05-07-2012, 17:24 I notice that Spain has multiple levels of VAT: 18% in mainland Spain and the Balearics 7% in the Canary Islands 8% in Ceuta 4% in Melilla The Spanish mobile networks therefore advertise their prices excluding VAT as well as multiple prices for each region including VAT. How does this work in practice? For example, is VAT charged based on where the usage takes place or where the customer is based? If it's the latter, what's to stop everyone from registering as being based in Melilla?