Concern over planned VAT increase in Spain
By IBI Magazine/Manuel Sevilla Moróder
Spanish trade body ANEN has expressed deep concern over government plans to increase the standard value added tax tariff to 18 per cent from the current 16 per cent. The measure, announced last September, will take effect on July 1, 2010.
According to ANEN, Spain is the only European country where boats bear both VAT and a matriculation tax, which is currently charged at 12 per cent of the purchasing price on vessels over 8m (26ft) in length. From July, the purchase of these boats will be taxed with a total 30 per cent over the price, compared with the current, already heavy burden of 28 per cent.
Two years ago, the introduction of new legislation that made matriculation tax levels of vehicles dependent on environment polluting factors, was effectively going to translate into a certain tax cut on boats, particularly sailing boats and smaller motorboats. However, the new regulation was subsequently made non-applicable on leisure boats.
ANEN has not commented on a foreseeable further reduction on boat matriculation levels as a result of the planned VAT increase. Matriculation fell overall by 35 per cent in 2009. No actions to curb this possible shrink of demand have been announced by the association either.
(29 March 2010)
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