Sales begin in Madrid - ahead of VAT increases

Many shops in Madrid were the first in Spain to begin their Summer sale yesterday, in an attempt to maximise business ahead of the rise in IVA in 10 days time.

The sales will continue over the summer months, but are certain to be affected by both the recession and the increase in VAT from 16% to 18% at the beginning of July.

Consumer groups have reminded shoppers to look carefully at labels and make sure that 'sale' items are marked with both the original and the sale price, also reminding consumers that it is illegal for them to sell soiled or damaged goods at a reduced price as part of the 'sale'.

Smaller shops can hold their sale for a minimum of one week and maximum of two months, but are obliged to have at least half of their stock at reduced prices.

Consumers are also reminded that even items bought in a sale carry a two-year guarantee and that receipts should still be retained.