Spain Raises Clothing Duty Value Tax Rate

From July 1st, the value-added tax rate of Spain will increase by 2 percentage points. The lowest tax rate (4%) has not been adjusted. Such products include bread, milk, eggs, books, newspapers, stationery, fruits 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 and hotel, cultural performance tickets, hairdressing, decoration, contact lenses and so on. 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, jewellery, etc.

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%).