LifestyleDMC
Changes to the VAT in Spain From 1/09/12

Sean Tipton of ABTA described the move as “very short-sighted.” “Spanish hoteliers, bar and restaurant owners have bent over backwards to keep their prices down and increasing the VAT risks wasting a lot of their efforts, ” he said. However, some tour operators expressed they felt relieved that the tax rise was not any higher. An increase of up to 10% had been feared. Bill Allen, the managing director of the On Holiday Group, told Travel Weekly: “3% is a much more sensible approach´´. Make sure you are prepared for the fact that some goods and services previously benefiting from the lower VAT rate, now will be moved to the higher rate category. For example the Cinema tickets will increase from 8% to 21% VAT.
For more information on the tax changes you can go to the official Tax office site here