On 1st September 2012, the Spanish government will be raising the level of IVA (VAT) from its' current level of 18% up to 21%. This means that ALL electrical products and services will be subject to the new higher level of tax. OUCH!!
Unlike the UK, ALL businesses have to charge and pay IVA regardless of level of income - there are no exceptions.
Most businesses will pass on all of the increase regardless but we are looking at ways to see if we can absorb any of the rise in other areas of our operation.
We won't be able to absorb it all but we'll be keeping it to a minimum as we bit the bullet and took the full rise last time around in 2010. We found this to be a good move because we increased our business which meant we didn't notice the extra taxes we were paying which in turn meant our clients got a better deal which is what we're all about.
OK, bottom line. We cannot absorb the tax on your phone calls but as they cost so little to start with the rise will be negligible anyway, you will still have call rates starting at less than half a cent a minute. On everything else, we should be able to absorb all or some of the rise so you will find very little difference overall.
So, if you've been thinking about taking up any of our services, now is the time to take the plunge and beat the increases!