“super-reduced” vat rate planned for spanish tourism sector

The Spanish People's Party (PP) is to promote a “super reduced” VAT rate (IVA in Spanish) for the tourism sector, which is expected to benefit such services as accommodation, catering and public transport and aim to bring them in line with their European competitors.

Ana Mato, PP’s Deputy Secretary, says the PP considers tourism “essential” for the future of Spain and are committed to its modernisation and development. PP leader Mariano Rajoy, and likely future Prime Minister of Spain, has already intimated intentions to reduce the VAT on these tourism services, currently at 8%, to 4%.

The current opposition party are also keen to encourage tourism development in other areas such as inland, rural, cultural, languages, religion, sports and spas as a means of achieving effective seasonal tourism, and they plan to externally promote Spanish tourism products in a campaign to boost Spain’s image.

The PP are counting on government and industry support in order to realise the potential for growth in this area and feel it is time to think long term, to diversify, upgrade and ensure Spain’s international competitiveness.

Source: Kyero