Spain’s VAT to increase from 18% to 21%

[AnonymousParticipant]

The latest austerity measures means that the sales tax VAT would go up to 21% from 18% and there would be a 3.5bn euro cut in local authority budgets. The measures are in return for a eurozone bank bailout and an extension to Spain’s deficit reduction targets.

Rise in reduced VAT rate on public transport, hotels and processed foods from 8% to 10%.

Basic goods VAT on bread, medicine and books stays at 4%.

Christmas bonuses suspended for public sector workers.

Unemployment benefit cut from sixth month out of work.

30% cut in councillors in some areas

Subsidies to be cut by 20% in 2013 for political parties, unions and workers.

[Fuengi (Andrew)Participant]

do you have a link to the article?

[AnonymousParticipant]

@fuengi wrote:

do you have a link to the article?

here are the links:

Spanish PM Mariano Rajoy urges more cuts amid protests

Spain reveals further austerity measures

[AnonymousParticipant]

Interesting table

[AnonymousParticipant]

Interesting table

[AnonymousParticipant]

Not sure how the tourists would handle it but why not make the VAT change depending on if it’s the summer months or not. =) That way it’s not disciminatory towards EU citizens.

[AnonymousParticipant]

Not sure how the tourists would handle it but why not make the VAT change depending on if it’s the summer months or not. =) That way it’s not disciminatory towards EU citizens.

[ChoperaParticipant]

@Ardun wrote:

Not sure how the tourists would handle it but why not make the VAT change depending on if it’s the summer months or not. =) That way it’s not disciminatory towards EU citizens.

Interesting – I mentioned to my Spanish wife that I thought it strange that they moved it back to September – why not introduce it in August like they were going to in order to get more foreign holidaymakers to pay VAT? She reckons it was something to do with the large tourism lobby demanding they leave the precious tourists alone.

[ChoperaParticipant]

@Ardun wrote:

Not sure how the tourists would handle it but why not make the VAT change depending on if it’s the summer months or not. =) That way it’s not disciminatory towards EU citizens.

Interesting – I mentioned to my Spanish wife that I thought it strange that they moved it back to September – why not introduce it in August like they were going to in order to get more foreign holidaymakers to pay VAT? She reckons it was something to do with the large tourism lobby demanding they leave the precious tourists alone.

[AnonymousParticipant]

Spanish VAT went up today. Everything just got more expensive, except for new housing, which goes up from 8pc to 10pc at the start of next year.

Here is an interesting chart comparing VAT in Spain to other European countries.

[AnonymousParticipant]

Official summary of all the new VAT rates by product category (pdf in Spanish)

[Author]

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