Bill proposes 4% VAT for tourism in flood-hit Pyrenees areas

Automatic summary, not yet reviewed

1. The bill would add a new section to the VAT Law to apply a 4% rate during 2013 and 2014 to tourist services provided by entities operating and with their tax domicile in Val d'Aran, Pallars Jussà, Pallars Subirà, Alta Ribargorça and Valle de Benasque.
2. The reduced rate would specifically cover hotel, camping and spa services, restaurant services and, in general, the supply of meals and drinks for immediate consumption.
3. The Government would have a maximum of three months from the law's entry into force to approve the necessary regulatory changes.
4. The law would enter into force the day after its publication in the Boletín Oficial del Estado, and any provisions conflicting with it would be repealed.

Who it affects

• Tourism businesses in Val d'Aran, Pallars Jussà, Pallars Subirà, Alta Ribargorça and Valle de Benasque: They could apply the 4% rate to their tourist services during 2013 and 2014.
• Hotels, campsites, spas and restaurants in those areas: Their services would be expressly included in the reduced rate.
• Tourists visiting those areas: They would pay less VAT on tourist services.
• The Government: It would have to approve the regulatory rules to implement the measure within three months.

Words worth knowing

Tipo superreducido (super-reduced rate)

A VAT percentage lower than usual. Here it would be 4%.

Domicilio fiscal (tax domicile)

The address where a company is registered with the tax authorities.

Proposición de ley (bill)

A text submitted by a parliamentary group to become law. It is not approved yet.

Disposición derogatoria (repeal provision)

Part of a law stating which earlier rules stop applying.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries