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CHAIRMAN’S INSIGHTS

Think global, act local

Due to fiscal measures approved by the Royal Decree- Law, of July 13th, the Spanish VAT rate will rise. The VAT rise will come into effect on September 1st, 2012. VAT Rates Until 31.08.2012 from 01.09.2012 on Standard: 18% ————— 21% Reduced: 8% —————– 10% Super reduced: 4% ———- 4% VAT Special system for equivalence surcharge VAT Rates Until 31.08.2012 from 01.09.2012 on Standard: 4% —————- 5,2% Reduced: 1% —————- 1,4% Super reduced: 0,5% —- 0,5% Additionally, some items are changing their rates from the Reduced to the Standard, such as flowers and ornamental plants, diverse hostel services, cinema, theatre, circus and other performance, funeral services, hairdresser services, digital TV and the acquisition of work of art. ** Furthermore Withholding Tax rate on professional activities rises temporally from the current 15% to 21%, from 1st September 2012 until 31st December 2013. For more information: Adminex Spain Barcelona c. Diputación 237, 8º 3ª 08007 Barcelona España Tel: +[34] 93 272 12 …

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