In the last two years, families paid 297 euros of VAT more than in the previous year only due to the impact of inflation. The increase in prices of products or services automatically implies an increase in the tax bill. Although the Government took some measures such as reducing VAT on some services such as electricity, it was not enough to avoid an extra cost for families. These are data calculated by Funcas in the latest issue of Cuadernos de Información Económica, a publication published by the institution.
The report also provides data on the increase in the bill by year. In 2022, Funcas calculates that the VAT borne by households increased on average by 263.6 euros, of which more than half, 52.4%, are directly attributable to inflation. The rest could come from increased consumption, for example.
In the publication, Funcas reviews the already palpable effects of the normalization of monetary policy on the pockets of citizens, the operations of companies and the finances of governments and explains that it is essential to understand these direct consequences on the economy and in everyday life to anticipate possible future scenarios and challenges.
By autonomous community, the study also analyzes the average VAT tax burden generated by inflation in the accumulated years 2021 and 2022. In Catalonia it was 280.6 euros, although the highest accumulated tax burden corresponds to Navarra with 341.8 euros, followed by Galicia (340 euros) and Murcia (330 euros). On the contrary, the Canary Islands is the community with the least accumulated revenue (240.7 euros).
For its part, the study reflects that the VAT accumulated due to inflation is higher in households that reside in smaller municipalities. This pattern against households that reside in rural areas is observed regardless of the age of the main breadwinner (over or under 65 years of age) and whether there are minor children in the home.
The work also analyzes that after more than a year of continuous increases in interest rates in the euro zone to combat inflation, "the financing costs of households, companies and governments have risen significantly, already observing an appreciable contraction of credit and an increase in the cost of debt.
