Exempt, not subject, or zero-rated
Exempt, not subject, and zero rate are three different treatments. Which one fits is not read off the trade without looking at the operation. The invoice has to state the one that actually applies, because choosing the wrong one changes modelo 303.
Three different boxes
An exempt operation is inside VAT, but the act waives charging it, sometimes with a right to deduct and sometimes without. An operation that is not subject does not enter the tax at all. A zero rate is a rate, not an exemption: the operation is subject and the rate that applies is zero. Putting any of the three words on the invoice does not choose the case. Modelo 303 picks them up in different places, as modelos 303 and 130 shows.
- Exempt: inside VAT, no VAT charged, with or without deduction depending on the case.
- Not subject: outside the tax.
- Zero rate: subject, at a zero rate.
The treatment on the line
Factura Fácil uses the treatment you set on the line. It does not decide whether your work is exempt, not subject, or zero-rated. If the mark does not match the operation, the modelo 303 that comes from those figures will not match either.
Common questions
Is my activity exempt?
It depends on the operation, not on the name of the trade. The invoice has to state the treatment that applies, and this guide does not assign it for you.
Does the label not matter if VAT is zero?
No. Exempt, not subject, and zero rate are not recorded the same way, and modelo 303 separates them.
Official sources
Informational text reviewed on 26 September 2026. It is not tax advice and does not replace the Spanish Tax Agency or your accountant. Deadlines, rates, and forms can change.