Although they have already explained it with great emphasis in the blog, in Peques and Más we will try to detail a little more how VAT rises specifically affects families.
And according to the latest family budget survey published by the INE, each Spanish household spends an average of 29,782 euros per year or about 2,480 per month. The survey distributes this expense among twelve groups of articles, although these groups do not fully coincide with the three types of VAT that have modifications, but can be used to estimate that the impact of the increase on family spending will be between 400 and 600 euros per family per year.
The VAT rates that have modification are those that pass from 18% to 21%, the reduced 8% to 10% and the guy super reduced, which applies to products identified as essential, has no modification and stays at 4%.
Throughout this scenario, consumption is being maintained. In addition, it is not known whether prices are going to become more expensive because there have already been some companies that have said that they will not touch them and that they expect the impact to be collected in their income statements. The VAT increase is also amplified because there are freezes or salary reductions, other tax increases and very high unemployment rates.
We have been able to read that products that have a Super reduced VAT, or 4%, are bread, flour, cereals, eggs, milk, cheeses, fruits, vegetables, vegetables, legumes, tubers and cereals. VAT is also maintained in paper books, newspapers and magazines, prostheses and implants for people with disabilities and telecare and home help services.
Meat, fish and other consumer products have a reduced rate applied to 10%. The impact will be noticeable in mineral water and pre-cooked foods, such as pizzas or frozen foods. It also happens with the baubles and soda that apparently would be more expensive if manufacturers do not assume the rise.
A high impact, which can vary that figure of 400-600 euros per year, is that of the electricity, telephone and gas bills. Items that have also been going up several consecutive months for a service that not only does not improve but also suffers from low margins and cost reduction.
The back to school it will be necessary to anticipate it because the clothes and the footwear happen to have a 21% VAT so summer will be used to provision the closet of the children before the next school year.
There are many more products in which the impact of VAT is going to be noticed so what we have to do is document ourselves and try to minimize the rise with more studied, less impulsive purchases, more planning and more expense management. Although it seems to me that something like this we are doing since 2007.
