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.