Value Added Tax (VAT)

You might think that because you're kids, you have nothing to do with taxes, and that taxes are a grown-up issue. Well, it turns out that, even if it doesn't seem like it, you too are paying taxes.

For example, every time you buy a soft drink, a bag of chips, a bun, or a video game, you are paying a tax.

The tax you pay when you buy these things is called VAT (Value Added Tax), which you've probably heard of. This is a tax paid every time you buy something or when someone provides a service or does work for you, whether it's because you have a drink in a bar or restaurant or because a plumber or electrician repairs your home. The thing is, we don't realize it because it's usually included in the price. If you look closely, many tickets list the VAT amount separately, while others include it in the price (the ticket says VAT included). This is so that the person who buys something knows that they are paying for it and that the person selling that item has paid it into the Treasury so that the buyer doesn't have to do it. Therefore, it is important to always ask for the invoice or receipt, even if someone might tell us that if we don't give us the receipt, they will charge us a lower price. Otherwise, how will we prove that we have paid so we can claim later, if what we bought is damaged or the repair was poorly done?

The amount we pay in VAT is not always the same for all the services and items we purchase. There is a general VAT , but there is also a reduced VAT that is paid on everyday items, including food in general, housing, restaurants, and museum admissions. And finally, there's a super-reduced VAT for essential goods, such as bread, milk, fruit, eggs, vegetables, medicines, and also books and newspapers. Furthermore, due to their importance, health and education services and dental services do not pay VAT.

Finally, it's important to know that VAT is a tax paid not only in Spain but also in all other countries of the European Union, so if you travel to any of them, you'll also be paying it on the price of the things you buy.