Mercadona is yet another large Spanish supermarket chain that has just announced it will not be increasing food prices when VAT increases in Spain on Saturday. Instead, Mercadona says it will absorb the higher rate of VAT in an effort to help its customers manage to cope in the failing Spanish economy.
It’s really no wonder Mercadona has always been and will always be my favorite Spanish supermarket. Supremely fresh fruit and vegetables, a great selection of products, a huge selection of Mercadona brand food products that are delicious and cheap and friendly staff — it’s amazing more people than already do don’t shop at Mercadona. It really is the best supermarket chain in Spain and, with this refusal to increase prices, it’s showing yet again just how good it is.
Other stores that have said they too will not charge customers the increase in VAT include IKEA, Eroski, Carrefour and El Corte Inglés.
IVA/VAT will increase from 18% to 21% and the reduced rate from 8% to 10%, giving Spain one of the highest VAT rates in the world. Crazy when you think most Spaniards have absolutely no money. How on earth does the government think they’re going to milk extra money from them this way?
Unless they shop at Mercadona, IKEA, Eroski, Carrefour and El Corte Inglés that is. And then these stores will be the ones paying the extra VAT. Let’s hope they make up for it in increased sales. They should.