29 Aug, 2012 @ 12:34
1 min read

Major shopping chains in Spain promise to absorb IVA increases

mercadona absorbs vat increase

By Rund Abdelfatah

THERE is a bit of good news for consumers as major shopping chains in Spain have promised to absorb the impending 3% IVA (VAT) increase.

Supermarket giant Mercadona, which claims 90% of its more than 8,000 lines have kept the same prices from a year ago, is the latest to announce it will not pass on the IVA increase to customers, joining other big names including, Inditex, Eroski, Carrefour, Lidl, Mango, H&M and Corefiel.

The IVA rate is set to jump this weekend from 18% to 21% with the reduced rate rising from 8% to 10%, while the super-reduced rate, which applies to fresh food staples, books or prescription drugs, will remain at 4%.

Many big chains are now promising consumers will not have to pay the increase.

However, a spokesperson for the Spanish Confederation of Housewives, Consumers and Users (CEACCU) believes the decision is ‘very short-term’ and a representative for the Organization of Consumers and Users (OCU) predicts ‘within the year these chains will likely raise their prices’.

The IVA increase, which comes into effect this Saturday (September 1), will affect every sector of the economy and the CEACCU estimates it will cost a family of four up to €600 more per year.


  1. Good news for consumers.

    Also a blow to the myth that the consumer “must” absorb any financial loss in an institution (e.g. the myth of price increases because of Gordillo and his band of merry men).

  2. The only myth here is the fact that large supermarket chains exist to fool the consumer into thinking they are getting a bargain, when in fact the opposite is true. Tesco tap water anyone?

  3. Wish my electricity company would absorb the increases. I’ve just had my latest electricity bill and it includes 3 back dated price increases one of them going back to last year, scandalous.

  4. I am a regular shopper in Mercandona, and its a total myth that their prices have been the same for some time!They are taking the P… as Paul states, the price have gone up this week …or are we not meant to notice!!!5 cents alone on the zumo I buy, not to mention lots of other stuff..

  5. our local Mercadona put their prices up almost 3 weeks ago. a very pennies on almost every product. Its common knowledge around these parts. This was long before they advertised their ‘absorbtion’. Just sayin’

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