Spain Raises VAT Rates Such As Clothing
The value added tax rate of Spain will increase by 2 percentage points from July 1st. The lowest tax rate (4%) has not been adjusted, such as bread, milk, eggs, books and newspapers, stationery, fruit and vegetables, government housing and medicines, etc. the median tax rate has increased from 7% to 8%, including processed food, water, new housing, pportation, Hotel hotels, cultural performances tickets, hairdressing, decoration, contact lenses, etc. the general tax rate has increased from 16% to 18%, including clothing, tobacco, liquor, cosmetics, commercial real estate sales, automobiles, audio-visual discs, tickets for sports competitions, jewelry and so on.
The Spanish government expects to raise the value added tax rate by 5 billion 150 million euros in the next 12 months and 0.4 percentage points to the inflation rate.
Spain's value added tax was levied in 1986, when the tax rate was 12%. Then the tax rate was raised four times in January 1992 (13%), August 1992 (15%), January 1995 (16%) and July 2010 (18%).
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