New IVA/VAT rates came into force throughout Spain today, meaning that already-cash-strapped families will have to tighten their belts still further.
Here´s what´s changed:
The general rate rises from 18% to 21%.
The reduced rate rises from 8% to 10%. Many items previously included in the reduced rate list are now excluded, with their tax rate rising to 21%. This means that entrance tickets for theatres, cinemas, shows, attraction parks etc; hairdressing; flowers, plants and funeral services will all cost considerably more.
The super reduced rate of 4% remains unchanged. Again, many items in this category previously have now been excluded and placed within the general rate of 21%. The cost of many stationery items and school materials will rise steeply – which won´t go down well with parents as their children return to school shortly.
You can read the full list of changes here .
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