• Politics.María Jesús Montero announces that the Government will lower the VAT on masks from 21% to 4% hours after Adriana Lastra assures that it would be illegal

The Government did not send a formal consultation to Brussels on the possibility of lowering the Value Added Tax (VAT) on masks until November 6, that is, until just a few days ago.

As stated in the letter in which the European Commission authorizes Spain to reduce this tax on masks, reference is made to a letter sent

last Friday

.

And that document, confirm sources from the Treasury, is the first formal consultation that the Executive transferred to Europe.

"Dear Mrs. Bardón Rafael [referring to Inés Bardón, Secretary of State for Finance],

thank you for your letter of November 6

, 2020 in relation to the treatment of VAT in the individual protection masks necessary to combat Covid-19" Specifically points out the letter signed by Gerassimos Thomas, Director General of Taxation and Customs Union of the European Commission.

The date of response from the Commission is yesterday, Tuesday, November 10

, which is when the Treasury actually affirms that it received the official response from Europe.

And after receiving this confirmation, the head of the department and government spokesperson, María Jesús Montero, announced it this Wednesday in the Congress of Deputies at the beginning of the debate on the entire State Budget Bill for the year 2021.

This communication contrasts, without a doubt, with the fact that just a few hours before the PSOE spokesperson in Congress,

Adriana Lastra, accused Italy of breaking the law by eliminating the VAT on masks

and stated that Spain would not do so when, in reality, Hacienda already knew that he could do it.

And, without a doubt, it is equally striking that, despite social and parliamentary pressure for the Executive to apply a reduction in the tax on this product, the Treasury did not transfer that official consultation until last Friday.

"

Before the official consultation was transferred, there were informal consultations. But the official consultation is not sent until there are guarantees of the answer

. And the Government wanted a clear and written answer," explain sources from the Treasury when consulted by the delay in formal communication.

Clarity was lacking according to the Treasury

The fact that the Treasury emphasizes that the Government wanted an answer responds to the fact that, in its opinion,

until now there was no clear guideline in this regard

.

In April, the Commission issued a statement that was later modified in May and in which it pointed out that it would not begin any sanctioning process for countries that decided to reduce VAT on masks.

And that is what countries like Portugal would have embraced.

The Treasury, however, emphasizes that the guide was not as clear as it was intended to convey, that it lacked precision, and that for that reason it has been waited until a formal and totally clear confirmation in this regard is obtained.

Along the way,

more than six months

have passed since

the Commission's first communication

;

innumerable requests for the VAT to be lowered;

a defense by Vice President Pablo Iglesias that in reality what they wanted to do was lower the tax "much more" than 4%;

and even a refusal by the Government to apply the reduction since it would mean renouncing 1,568 million euros in income, to finally announce the Minister Montero that the VAT will be lowered up to 21% to 4%.

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  • Taxes

  • Face masks

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