Spanish sales tax up from 18% to 21%, 1st Sept.

[John Bull]

Just a quick heads-up.

 

Spanish VAT /IVA/sales tax/call-it-what-you-will goes up 3% on 1st September.

 

This will impact on most purchases in Spain, incl food & drink.

And smokes (thinking of Brits who bulk-buy)

And on-board purchases in Spanish waters for some cruises (broadly those which don't call at a non-EU port)

 

Folk who buy things to take out of the EU (thinking of our colonial friends) can obtain a refund of all the IVA tax by buying at a store which operates the refund scheme. Worthwhile for expensive souvenirs, since it saves about 21% of the cost.

http://www.ricksteves.com/plan/tips/vat.htm

 

JB :)

[pris993]

does this apply to hotel bills? Thinking about stay a couple of days, maybe the hotels already have the VAT included in the rate as I see rates that are high, $350 a night for example.

[insanemagnet]

No. Only for goods taken out of the country, not services or goods that don't leave.

[VMax1700]

does this apply to hotel bills? Thinking about stay a couple of days, maybe the hotels already have the VAT included in the rate as I see rates that are high, $350 a night for example.

 

Yes, vat is already included in hotel prices in Europe. Indeed all over Europe the price you see on the sticker is the price you pay! The only exceptions are: service charge in restaurants (must be mentioned on the menu) - this is in lieu of tips (no additional tips necessary) and the occaisonal 'city tax' charged by hotels.

 

For Vat refunds - it can only be refunded if the goods on which the vat was charged leave the EU. so hotel bills, restaurant bills etc cannot get a vat refund.

[Host Bonjour]

Always important, as always, to get down a few "key" local phrases in the local language wherever one will be visiting as it relates not only to people/politeness but MONEY!

 

As has been mentioned by JohnB...VAT/IVA has many names...in Spanish the full translation might not even fit on a tiny receipt printout:

"Impuesto Sobre el Valor Añadido" :eek or might just say

"Impuesto Valor Añadido" or

"IVA"

 

And so...one must know what one is paying for. In France it might say VAT on your receipt or "Taxe Sur La Ajoutée" (there's no V in that!) or as I most typically saw it as a traveler, simply "Servis Compris" (hotels, restaurants, *some shops, not all*) which just means the service charge - or VAT, is included in the price one has been charged in TOTAL. It might not necessarily be represented as a single, line item as one sees it printed in the States. Alas, being aware of the VAT rate is also keen travel knowledge to have so one may always be able to calculate what one is paying whilst shopping on holiday and avoid any unfortunate mishaps. Know your taxes, tariffs, surcharges - whatever they are called, in any language and all rates! Easy to make a cheat sheet or note on paper or your smartphone/device to keep handy for your country itinerary pre-cruise.

 

Thus we are grateful to John Bull for the Spanish VAT update post and all his help on the boards, and to all our great CC members! :) More knowledge makes for better, smarter, more rewarding trips - Thanks John!!

[abo]

Thus we are grateful to John Bull for the Spanish VAT update post and all his help on the boards, and to all our great CC members! :) More knowledge makes for better, smarter, more rewarding trips - Thanks John!!

 

But also just to point out that the original post in this thread is from 2012. The VAT/IVA increase came in four years ago - there is no increase planned for this September.