Spain's bumps up VAT taxes in effort to ease its economic pains
Skift Take
It may not be smart to tax one of Spain's quickest ways to economic recovery, but luckily the costs won't affect travelers who have already booked for this season.
Source: The Daily Telegraph
Author: Jolyon Attwool
The Spanish Prime Minister Mariano Rajoy announced that general VAT – including items such as clothing and cigarettes – would be raised from 18 per cent to 21 percent to combat the country’s mounting economic difficulties.
VAT for the leisure industry, which is at a reduced rate, will increase from eight per cent to 10 per cent, covering accommodation, food and drink at restaurants, hotels and bars, as well as processed food.
Visitors booking hotels independently may find the tax rise is added to their bill for stays after August 1 this year.
A family that spent £1000 on an independent hotel stay, as well as food and drink, would find £20 added to their costs, without taking th
