Spain’s government hastens decision on whether to increase VAT of facemasks

Spain's government hastens decision on whether to increase VAT of facemasks Credit: Creative Commons

Spain’s government’s VAT tax on facemasks is set to increase back to its initial 21 percent from four percent as the deadline ends on June 30.

Spain’s government reduced the VAT tax on facemasks in November 2020, which it has already extended once, and now it remains to be seen whether it will be extended yet again before the tax cut ends on June 30, as reported by 20minutos.

The government of Spain now only has two Councils of Ministers left to reveal whether it will return VAT on  facemasks to the general rate of 21 percent or maintain the super-reduced rate of 4 percent at which it has been taxed since the end of 2020, when the Minister of Finance, María Jesús Montero, accepted a measure that she had resisted for weeks, claiming that the European Commission did not allow it, when in fact it did.

Despite this, the lowering of VAT only affected surgical masks, but not FFP2 masks, which offer greater protection and have been widely used by the public.

According to the Tax Agency, in 2021, the only full year that this VAT reduction has been in force, the State stopped receiving €137 million euros for the difference between 4 and 21 percent.

Almost as much as the incredible €146 million that the public coffers did not receive in 2021 due to the exemption of VAT on medical equipment to combat Covid.

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Written by

Joshua Manning

Originally from the UK, Joshua is based on the Costa Blanca and is a web reporter for the Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at [email protected]