Spain 2021 Tax law published. VAT increase on sugary drinks, thresholds extended

Spain has published the new Tax law for 2021. As mentioned in our previous article VAT on sweetened drinks has indeed been increased to 21% in order to help fight against childhood obesity and diseases associated with sweetened beverages. 21% is currently the standard VAT rate for Spain but these drinks will still be subject to a lower VAT rate when offered in bars and restaurants.

 

An extension has been granted for the increased threshold of 250.000 for the application of the simplified VAT regime. The special VAT regime for agriculture, livestock and fishing has also been extended to 2021.

General income tax for non-residents has been changed from a flat rate of 24% to a progressive rate of 24% up to 600.000 and 47% for income exceeding this amount.

 

Tax on insurance premiums has increased from 6% to 8%.

 

Source credit: VATupdate.com

 

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