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Spain raises VAT to 21% 1 September 2012

Currency crisis forces tax rise

Spain has become the latest European country to raise its standard Value Added Tax rate in the face of the worsen financial and Euro-currency crises. The rate will rise from 18% to 21% from 1 September 2012.

Spain already had to raise its main VAT rate in July 2010 from 16% to 18% following the original financial crisis.

There will be a rise from 8% to 10% of the reduced VAT rate. But the 4% rate will remain unchanged.

Most EU member states have been forced into austerity VAT rate changes include: UK, Finland, Romania,Poland, Ireland, the Netherlands, Hungary, France Greece, Czech Republic.

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