Spain Tax: Increase in the Value-Added Tax (VAT) rates

Spain Budget Law for 2010 includes an increase in the VAT rates. The standard VAT rate will increase from 16% to 18% and the reduced rate from 7% to 8%. The super reduced rate of 4% Value-Added Tax, however, will remain unchanged.

The new tax rates will be applicable to supplies of goods/services for which the tax point is on or after 1 July 2010.