Home NEWS Supermarkets ignoring IVA reductions says consumer rights organisation

Supermarkets ignoring IVA reductions says consumer rights organisation


A Spanish consumer rights organisation is complaining that many supermarkets have not implemented the recent reductions on IVA for food items

FACUA (the Spanish consumer rights organisation based in Sevilla) points out that the IVA reduction announced by the government is not being respected by establishments and has filed a complaint with the Competitions Authourity for not correctly applying the discount on basic products that came into force on January 1.

This association clarified that there are seven supermarket chains where it has observed prices have not been adapted to the law promoted by the Central Executive. Facua analyzed 676 product prices of the most popular supermarkets in Spain from December 30 to January 3. The result of the survey has not been very satisfactory, according to the organisation.

In 54 cases, the drop in IVA has not resulted in a price reduction for the product. In another 34 cases, there was no variation in the IVA at all. There were even situations in which the cost was higher than it was before the government’s measure was announced.

The irregularities ranged from 10% to 17% and Facua believes that this trend may continue as the year progresses. However, the government believes that the real impact of its initiative on the economy will not be felt in people’s pockets until well into January.

Facua’s main complaint is that when the reduction is implemented, supermarkets take the opportunity to increase prices. As a result, there is no change in price for the consumer. However, for the chains that engage in this behavior, there is an increase in profit margins. Facua is demanding the Competition Authority ensure supermarkets comply with the law.

FACUA-Consumidores en Acción is a Spanish non-governmental organization (NGO), dedicated since 1981 to the defense of consumer rights 

Read more about the IVA reduction: IVA reduction on 7,000 food items offers relief to Spanish consumers

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