image by “The Expatriate Ezine”
Spanish Prime Minister Mariano Rajoy told the parliament on Wednesday the government will increase the Value Added Tax from 18 percent to 21 percent.
Rajoy announced several economic measures to combat the high public deficit. The VAT rise has been one of these measures.
The Spanish government will also increase the reduced VAT rate, from 8 percent to 10 percent.
This brings the Spanish VAT rate to the EU average rate, and on par with for example Portugal.
Also see here.
The proposal is that the new rate kicks in on September 1.
VAT rates increases may have a significant impact on your accounting systems. See http://www.us-vat.com/blog/?p=468 for more info.