Spain Raised VAT Rates from July 1, 2010

According to a report on June 27, 2010 from the Spanish Cinco Dias, from July 1, 2010, the value-added tax (VAT) rates of Spain will be raised by 2 percentage points at the most.

Therein, the tax rate at the lowest grade (4%) was not adjusted, with commodities including bread, milk, eggs, books, periodicals and newspapers, stationery, fruits, vegetables, government security housing, and medicines; mid-range rate was raised to 8% from 7%, including processed food, water, new housing, transportation, restaurants and hotels, tickets for cultural performances, beauty salons, decoration, and contact lenses; ordinary tax rate was raised to 18% from 16%, including clothing, tobacco, liquor, cosmetics, commercial real estate sales, automobiles, audio and video discs, sports tickets, and jewelry.

Spain started collecting VAT since 1986 with the tax rate of 12% back then; Later, the tax rate was raised 4 times respectively in January 1992 (13%), August 1992 (15%), January 1995 (16%) and July 2010 (18%).