Spanish Restaurants Face Scrutiny Over VAT and Terrace Pricing Practices

Madrid, Spain – A recent viral video from tax expert "FISCALIDAD PARA TODOS" (Taxation for Everyone) has shed light on common, yet illegal, pricing practices in Spanish restaurants, sparking a conversation about consumer rights and transparency. In the video, the expert emphasizes that according to Spanish law, the Value Added Tax (IVA) must always be included in the final price displayed on restaurant menus. "The VAT has to be included in all prices," he states, clarifying that restaurants cannot list prices excluding VAT and then add it later to the final bill. This practice, he notes, is a "mistake" and not permissible. Furthermore, the expert addressed the controversial practice of charging extra for terrace service. While acknowledging that restaurants are permitted to increase prices for outdoor seating, he stressed that this increased price must be clearly reflected for each individual item on the menu. He showed an example of a sign stating a "5% increase for terrace service," which he deemed incorrect. "It has to appear in the price list, the terrace price for each product," he explained. "It's not enough to just state a 5% increase because we go back to the same thing: clear information is not given to the consumer." The video highlights the importance of clear and transparent pricing, ensuring that consumers are fully aware of the total cost before ordering. This information is crucial for diners across Spain, empowering them to understand their rights and challenge non-compliant billing practices.

Diario ABC

6 days ago

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