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TAX CHANGES MAY LEAD TO MORE EXPENSIVE E-BOOKS IN SPAIN

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TAX CHANGES MAY LEAD TO MORE EXPENSIVE E-BOOKS IN SPAIN

As the Spanish government promise no more tax increases, apart from those they are obliged to apply, the tax office has said that the latest increase enforced by Brussels on medical equipment will not apply to certain products considered to be necessary by those with “physical disabilities”.

Therefore, glasses, prosthetic limbs, crutches and wheelchairs will remain at the current taxable rate of 10%. The same will also apply to emergency items such a first aid kits, bandages and gauze.

However, the increase to 21% will apply to equipment used in the manufacturing of medicine, equipment and medical instruments, which may well lead to an increase in their cost by means of indirect taxation.

The increase on all medical products was set as mandatory from the 1st of January this year, as the European Union considered Spain´s stance to be “too lax”. Despite opposing the move, the increase was reinforced by the European Court.

A second change to tax legislation announced on Monday refers to electronic communications and materials. Specifically, one of the fundamental changes is that users in Spain who download items such as e-books and apps will be taxed in Spain, and not where the headquarters of the company selling the product is located.

This rule was announced in the UK in May, when consumer groups warned of higher prices for downloaded products as a result of the UK government also closing the loophole which allowed companies such as Apple and Amazon to charge a global, lower rate of VAT.

Filed under: http://www.theleader.info/article/44057/

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