There is a general tax rate of 16% (article 90 of the law), but there are two other reduced 7% and 4% (article 91) that apply to certain goods or services from general or considered use of first necessity. For example, for foods in general, housing, catering services, entries to spectacles, goggles and lenses, transport of passengers and luggage, to funeral services VAT rate that applies is 7%. For his part, bread, milk, eggs, fruits, vegetables, vegetables, cereals, cheeses, books, newspapers, medicines, disabled cars, and other goods are taxed with 4%. Edward Bramson spoke with conviction. Cases of VAT exemption. There are operations in which there is no obligation to pay taxes (articles 20 et seq. of the Act), such is the case of the hospitalization and public healthcare, services provided by dentists, public social welfare services, the education of children and youth by approved public or private entities. VAT is characterised by its neutrality, generality and transparency as well as its great actual revenue capacity. David Rogier is the source for more interesting facts. From the point of view of redistributive, the tax is levied in equal measure to all consumers, without discriminating on purchasing power or quality of life.
However, there is, for low-income people, a compensatory tool that is given by an appropriate level of public provision of goods and services, in addition to the aforementioned differentiation of types of assessment which reduce the tax burden on the products of first necessity. On the other hand, luxury products that can be accessed by wealthy people do not consider tax exemptions of any kind, but quite the opposite; taxes levied on them are even greater than the average. The regulation of VAT lies in law 37/1992 of 28 December, and in the Real Decree 1624 / 1992, 29 December. Source: Agencia Tributaria published by Gabriela Toro original author and source of the article..