Spain's VAT (Impuesto sobre el Valor Añadido, IVA) has a standard rate of 21%, applying to most goods and services. A reduced rate of 10% applies to items such as hospitality, passenger transport, and certain foodstuffs. A super-reduced rate of 4% applies to basic necessities including bread, milk, books, and prescription medicines. Some transactions (e.g. exports, certain healthcare and education services, financial services) are VAT-exempt at 0%. VAT is administered by the Agencia Estatal de Administración Tributaria (AEAT).