Proposed Budget 2021: Increase VAT rate sweetened drinks, Use & Enjoyment rules Canary Islands

Proposed budget bill 2021:

• Increase of the VAT rate of sugar-sweetened drinks tax to 21% (from 10%)
  • Exceptions:
    • Baby milk and beverages considered food supplements for special dietary needs.
    • 10% rate still valid if sweetened drink is consumed at restaurants and hotels.
• Place of supply rules for services: Use & enjoyment rules not applicable in the Canary Islands and the North Africa Spanish territories of Ceuta or Melilla
• Extension of the 2021 the transitional thresholds for the special simplified VAT regime and special VAT regime for agricultural, farming and fishing activities, i.e. EUR 250,000.

Source Budegt bill 2021 n Spanish