Hard on the heels of the announcement that the two rates of IVA would rise from this weekend the central Government has announced a 13 point hike in IVA on certain products and services from September.
Earlier in the month Nexonr reported on this webpage that the Government was studying the possibility of moving some items from one category of IVA to another in order to increase the amount of IVA collected overall. Yesterday, when the small print of the austerity package was published in the Government´s official bulletin, BOC, it became clear that IVA on some items will rise from 8% to 21% in September. These include cinema and theatre tickets; entrance to discotheques; hairdressers and barbers; funeral services; digital television services, and purchase of works of art.
From this weekend the reduced rate of IVA rose from 8 to 10%. The goods and services affected are: most foodstuffs; sanitary products; public transport; hotel and restaurant services; property sales, and cleaning services.
The higher rate, which rose from 18 to 21% affects: domestic appliances, clothes, tobacco, haberdashery, plumbing and building services, cars, beauty products, energy lubricants and professional services; and flowers and ornamental plants.
The super reduced rate of IVA of 4% remains the same and applies to basics such as bread, milk, fruit, vegetables, cereals etc. It also applies to books and newspapers, cars and transport for disabled people and public housing.
