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Changes to the VAT in Spain

Changes to the VAT in Spain

VAT increase from 18% to 21% come into effect on the 1st of September 2012. The reduced rates will rise from 8% to 10% and the 4% VAT will stay the same.
The Spanish government previously indicated last year that the Spanish VAT rate would increase to 20% in 2013. But due the worsening economic position and the recent request for a 100 billion euro bank bail, out from the European central bank, the Spanish government was forced to a more drastic and further increase.