IVA Hike

 Oh, dear.  A U turn from Rajoy, must be good friends with the UK coalition government.  IVA to increase by 3%

And cuts in unemployment benefit, as well.

 

Yes Bob

What a U turn, I'm sure it was only last week that this IVA hike was denied.

The lower rate of 8% on a raft of food goes up to 10% but the lowest rate stays at 4%

Apparently this comes into force on the 1st August - so maybe a bit of a bun fight leading up to it.

I am still able to buy ocassionally without any IVA added, but those days are disappearing

 

Buy what?

I bought a motor for my electric sun blind

At last some action from the Government. This plus the latest cuts is a good start, but Spain has to learn to live within it's means and stop spending money it has to borrow.

Roll on the next series of cuts in employment within Regional and Central government.

David

Increasing taxes just reduces income. Look how much they lost & still haven't recouped when they raised the tobacco taxes.

guslopez

the government only has income through taxes. They could cut services harder than planned.

This is what happens when you overspend and at the mercey of the Money Markets and the ECB.

Get used to it as when October comes round and Spain (Central and Regional) needs to go to the Market big time further cuts will need to be made.

David

I presume that the new 10% VAT rate (up from 8%) will apply to property purchases? 

Since nobody is buying property in Spain (so no VAT being paid), surely a more sensible approach would be to scrap VAT on property purchases to try and tackle the backlog of 1.6 million unsold houses?

Sanchez1

many are unsold as they are junk, think the JCB solution the best. People who are ans want to buy will look towards better quality builds not the rubbish thats on offer.

The JCB option is difficult for the Banks but they are having to devalue the asset anyway. the real value is in the land.

David

 

The 4% rate for new builds is staying for 2012 - I'm unsure about resales, trying to find out.

You don't pay IVA on resales, just property transfer tax. There has been no mention of this in recent reports so presumably it will stay as it is at 8% up to 400,000 euro property price (Andalucia) until the 4% IVA tax incentive on new builds comes to an end in 2013. Then they will probably make them the same again at 10% to protect the developers selling new builds!

Now I see a delay has been introduced ..........www.typicallyspanish.com/news/publish/article_35281.shtml

Seems they have added a few other sneaky bits too!!

Like ..................There are some items and services being moved to the top rate - glasses and contact lenses, cinema, hairdresser, discotheques, theatre, health products, funerals and cleaning services will move from 8% to 21%.
Oh joy!!!!
 

This message was last edited by spiritofspain on 23/07/2012.