VAT rise in Spain as from 1st September

There has been recent tax news introduced by the Royal Decree Law 20/2012. This regulation has increased the general VAT tax rate from 18% to 21% and the reduced tax rate from 8% to 10%.  The new tax rates will be applicable from September 1st 2012.

Additionally, Personal Income Tax withholding over the income paid to professionals are increased from 15% to 21% (the new withholding tax rate will be applicable from September 1st, 2012 until December 31st, 2013).