Sponsored Links

Spain to implement new VAT rate in August: source

Spain's Prime Minister Mariano Rajoy gestures during a parliamentary session in Madrid, July 11, 2012. Rajoy said on Wednesday he would raise the value-added tax by 3 percentage points to 21 percent as part of a large package of tax hikes and spending cuts aimed at trimming the public budget by 65 billion euros over the next 2-1/2 years. With the economy in recession, unemployment high and tax income falling, Spain is struggling to meet tough deficit cutting targets that it has agreed on with the European Union. REUTERS/Andrea Comas

Spain's Prime Minister Mariano Rajoy gestures during a parliamentary session in Madrid, July 11, 2012. Rajoy said on Wednesday he would raise the value-added tax by 3 percentage points to 21 percent as part of a large package of tax hikes and spending cuts aimed at trimming the public budget by 65 billion euros over the next 2-1/2 years. With the economy in recession, unemployment high and tax income falling, Spain is struggling to meet tough deficit cutting targets that it has agreed on with the European Union.

Credit: Reuters/Andrea Comas

MADRID | Wed Jul 11, 2012 7:46am EDT

MADRID (Reuters) - Spain will implement a 3 percentage-point hike to the value-added tax rate on August 1, a government source said on Wednesday.

The main rate of value-added tax on goods and services will rise to 21 percent from 18 percent.

Prime Minister Mariano Rajoy announced in parliament a raft of new taxes and spending cuts designed to slash 65 billion euros from the budget deficit by 2014 as recession-plagued Spain struggles to meet tough targets agreed with Europe.

(Reporting by Fiona Ortiz; Editing by Tracy Rucinski)
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (3)
mulholland wrote:
Boon for internet sales and imports. I understand the Euro bordes are unrestricted, tax free, and without inspection by international law. There goes the Spanish tax base. Unless of course the EU is a farce.

Jul 11, 2012 6:44am EDT  --  Report as abuse
grcaz wrote:
Amazing…Again with the tax increases… This will really help the economy and unemployment.(sarcasm)

STOP SPENDING MONEY YOU DON’T HAVE!!!

Jul 11, 2012 6:52am EDT  --  Report as abuse
grcaz wrote:
That will help

Jul 11, 2012 6:56am EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.
See All Comments »