Lay My Hat

This month, the VAT (IVA) on Electricity goes up from 6% to the maximum 23% - ouch !

In the Budget presented to Parliament earlier this week, the VAT on Restaurants will increase form 13% to 23%

OK, so I lied in the title of this topic

blimey - sympathies

And we haven't even started with the Portagens.......

edit...down South (A22) I mean.

Will you have to put up your prices? Sympathies - VAT has been 19,6% on energy here ever since I've lived here - and there are other taxes that have been added now. VAT only 5,5% in restaurants, but I still can't afford to eat out very often.

la vache! wrote:Will you have to put up your prices?.

I don't mean to sound rude, but that's the last thing to do. Visitors being faced with increases in Restaurants, foodstuffs, Tolls do not want to pay any more for their holidays.
If anything we need to be thinking about dropping prices rather than kill the tourist industry !

I've done some arithmetic, and actually all I have to do is sell one more off-peak week and I can recover the additional VAT on electricity.

So, the answer is to keep my prices, and just work harder and smarter.

Perhaps a few striking (un)civil servants in Greece etc could learn that lesson too !

That's great if you can do that e-R. I wish I could, but with the fall in sterling against the euro, increases in all other bills an the only possibility of increasing the letting season by doing more low season lets where the profit margins are already negligible due to heating costs, it just isn't feasible anymore to keep rates the same or drop them.
But is great to see that Portugal is taking action so get itself out of the financial mire. I hope they are as successful as Ireland and as you say, teach Greece a lesson.