Let's welcome the 21% #VAT

On September 1, 2012, the VAT increased . If something draws attention to this tax change, it is the category variation (from VAT reduced to the general rate) of some goods or services such as hairdressing, flowers and plants, cinema, theater ... In this post, we want to review the VAT rates and your current situation.

General rate (increases from 18 to 21%):

  • School supplies
  • flowers and plants
  • Party rooms, discos ...
  • Alcohol, tobacco ...
  • Healthcare, dental and thermal cures
  • Sports services
  • Barber Shop
  • Vehicles
  • Medical certificates
  • Gas, electricity, telephone ...
  • Cinema, theater, musical shows ...

VAT increase 21%

Reduced VAT (increases from 8 to 10%):

  • Human Nutrition
  • Seeds, fertilizers
  • Medicines for animals
  • Glasses and contact lenses
  • Surgical material
  • Passenger transport
  • Housing works
  • Libraries, museums ...
  • Waste collection cleaning services
  • Hospitality services except shows
  • Homes and garages

Super-reduced VAT (remains at 4%):

  • Bread, cheeses, eggs, fruits and vegetables
  • Books, newspapers, magazines
  • Computer products
  • Medicines for human use
  • Reduced mobility vehicles
  • VPO and telecare

Know the incidence of the VAT increase in the different economic sectors:


Rising prices will slow down competitiveness .

For one of the main drivers in Spain, the rise of up to 10% in hotels and restaurants is a factor of uncertainty in the face of the winter season. The hoteliers and businessmen consider that the measure is a "mistake", as it will achieve the opposite effect as expected. It is also possible that this leads to even more losses and layoffs .


The distributors ask for compensation .

In the case of distribution companies, only basic products will continue to be taxed at the super-reduced rate of 4%, while the rest will be affected by the general rate of 21%.


Consumers will buy only the essentials .

The difficulties that the increase in VAT from 18% to 21% will generate in the sector have put companies on alert, of which only large groups will be able to absorb the increase and maintain sales.


The crisis, which has lasted for five years, will continue.
The automobile sector calculates that the VAT increase to 21% will make each vehicle more expensive on average 650 euros, which will halt the exit from a serious crisis that has lasted for five years.


Little impact for a battered sector.

Of all the affected sectors, housing is the one with the least capacity to respond to the rise . The Government, which has already abolished the personal income tax deduction, will maintain the super-reduced rate of 4% until January 2013, at which time the VAT on homes will stand at 10%.