Mathematical Puzzles and IVA, Spain's VAT

Spain has a VAT (Value Added Tax) of 18 percent, called IVA. That sounds high until you consider that Denmark's VAT is 25 percent. These make 7 percent or even 11 percent sales tax rates sound almost silly. But there are two differences in sales tax in the U.S. and the IVA I pay in Spain. The first difference is that IVA is charged by only one jurisdiction in Spain--the national government. In the U.S., on the other hand, sales tax can be charged by the state, the county, the city, or all of them--or some other government entity that you don't know about. Then, too, the sales taxes and various usage taxes can easily add up to 18 or maybe even 25 percent--as I am reminded every time I check out of a hotel at a conference.

The second difference in taxes is that in the U.S. consumer prices are listed without the tax, so that you generally get a receipt that shows the price of the item and the amount of the tax imposed on it, which adds up to a price that is probably higher than you thought and certainly higher than you wanted. In Spain, and everywhere that I know that uses the VAT, the displayed price of the item includes the tax. From the price you pay, the merchant presumably computes and sends the appropriate amount to the tax authorities. You don't have to think about it and you may not even know what it is. It makes it much more tolerable to pay a higher tax if the amount you are paying is not constantly thrown in your face.

Still, I noticed awhile ago that some grocery stores that I frequent include information on the receipt showing how much tax was charged. So I have been saving my receipts and trying to figure out the Spanish IVA taxation. Underneath the cumulated purchase total (the total), the amount you tender (the efectivo) and the change you get (the cambio) is a little chart like the one below.

BASE     IVA     CUOTA     IMPORTE
2,76        8         0,23           2,99
2,53        18       0,45           2,98
3,25        4         0,14           3,39

Looking at charts like this were probably what first made me aware that not everything was charged at the 18 percent rate. Some items were apparently charged at 8 percent; others at 4 percent. Of course I wondered which items belonged in which group.

It is not as easy to find out as one would think. Remember, the displayed price includes the IVA, and the real item price (the base, as I learned) is never shown--except on this receipt. When I had accumulated enough of these little receipts and finally remembered to examine them at home--and got out my calculator and magnifying glass--I confirmed that the cuota is the amount of the tax on its corresponding base, charged at the appropriate IVA rate. The importe is the sum of the base and cuota and would be the amount shown as the price of the item, if I had only bought one item in this category. Of course that seldom happens, so the game on the way home from the grocery store has become figuring out which items purchased add up to the amount of each importe, because if that can be determined I will know which items are taxed at which rates.

One day this week we went out just to buy water, and we came out of the store with only 11 items. That's a workable number, especially since there were five bottles of gaseosa (1,5 liter bottles of flavored water) at 26 centimos each and two cartons of milk at 1,22 euros each. Add to that a bottle of white wine at 1 euro exactly and one of red at 1,98. Then the fresh mushrooms at 95 centimos and the luxury purchase of Caesar salad dressing at 1,69. So I was able to figure out which items added up to the importe in the three categories above. 

This is the point where, if you are so inclined, you should do the math before scrolling down for the answer.








Here is a review and a clue:

18 percent. The normal or default amount, applied to every consumer purchase unless specifically exempted.
8 percent. Applied to alimentary and sanitary products, for animals as well as humans. Specifically excluded from this category are alcoholic beverages, soft drinks, tobacco, cosmetics, and products of personal hygiene.
4 percent. For items of "basic necessity," specifically
    - Bread and "cereals" for making it.
    - Milk, cheese and eggs. 
    - Fruits, vegetables, legumes and natural root vegetables.

The answer:

• The wine was charged at the default rate of 18 percent. Not a surprise.
• The gaseosa was charged at 8 percent. This is where I learned that gaseosa is apparently considered  water (even though carbonated and with some flavoring) rather than a soft drink (refresco), which would have been charged at 18%. Also charged at 8% was the bottled ready-made salad dressing, which surprised me, because I consider this a luxury rather than a regular food item (you can probably tell that this is not my salad dressing).
• Both milk and mushrooms were charged at 4 percent, as basic necessities.

I had accumulated lots of other receipts, so I took this opportunity to look through them to see if I could learn any more about the differences between basic necessity 4 percent items and the normal food rate items at 8 percent. The "cereals" for making bread do not include oatmeal or corn flakes--I guess they mean that "flour" is 4 percent. But cat food is charged at the same rate as general people food--I'm sure that Goldie approves. And fresh fruits and vegetables--of which I buy many--are 4 percent, though canned corn is 8 percent. The store where I buy most of my frozen vegetables doesn't provide this nice little accounting, so I don't yet know whether frozen is better (taxwise) than canned. On the other hand, that store tells me how much I would have spent in the old currency of pesetas! I hope that is information I never need to use.

The good news is that some eye drops I bought at the pharmacy also are just 4 percent and that food and drink consumed at a cafe, bar, or restaurant seem to be just 8 percent, regardless of whether alcohol is involved or not, though it may take a little more research to verify that. I was pleasantly surprised to see that my 4 percent purchases were a substantial part of my grocery basket, and now I can create a little game to try to keep those high, because they obviously are applied to foodstuffs that are not only basic but nutritious. By the time I went through most of my receipts, however, I had a headache and had consumed most of the afternoon. It's now almost dinner time, and I'm going downstairs for an 18 percent beverage.

Signs of Autumn

Someone mentioned that the British use "autumn" while Americans use "fall" to denote the season that comes after summer. I haven't really observed that yet in my verbal encounters with the Brits here in Spain, though my Diccionario Cambridge Klett Compact confirms that the translation of the Spanish otoño is "autumn, fall (Am)." I have always preferred "autumn" because "fall" seems so, well, happenstance. Autumn is a destination--you don't just fall into it when summer gets tired. One thing is sure: we are all tired of summer now, at least those of us who have been here for the past several months. Those who escaped to northern European climes for July and August and are now returning to the Costa appreciate the still-high temperatures, since they have been experiencing cold and rainy weather for much of the summer. But I'm not here to talk about climate change.

 Nearly all with whom I email have spoken to me with pleasure of cooler days and that wonderful crisp feeling in the air that autumn brings. It's cooler in the morning and later in the evenings here too, now, and it's dark in the mornings until 8:00 and gets dark again less than twelve hours later. But temperatures still register in the 90s F. at lunch time on the thermometer in the shade outside the sun room. My office air conditioner is broken, sending out hot air instead of cool, and I waited several days last week for the repairman to fit us into his busy schedule, and then he didn't come on Thursday afternoon between 5:00 and 6:00 as promised--or on Friday, either. So I do not yet feel like fall, but I am definitely looking forward to autumn.

There are signs. The returning northern Europeans, for a start. Our petanca games are filling up with people again compared with the sparse participation in the summer. Other social activities are starting up and the calendar is getting lots of notations. And I wondered this morning whether the grocery store would be open today (it's allowed to be open on Sunday during the summer only) but then remembered that I can count on today and next Sunday, through the month of September.

The surest sign of autumn for those of us who live on the northern side of the equator is the beginning of school, and school has started. First come the vuelta al cole ads in the circulars and large placards in the stores, announcing special prices on supplies, clothing and whatnot for the return to colegio, which is primary or elementary school--not college--in Spain. And then comes the start of school itself, September 8 according to one friend with two youngsters who attend, but it must vary a little bit from town to town.

Last Monday I happened on to a small colegio in Rojales at 12:25 PM. About 20 people were standing around the gated entrance. A few men, many women, some young and fashionable, a couple older, in Spanish grandmotherly style. Two women in light-colored abaya street-length cloaks and hijab headscarves. They were all waiting for their children to be released from school for the day, and within a couple minutes of my walking back to stand on the other side of the street after we parked the car, here they came. Tiny, happy children, with big smiles on their faces, walking out two by two through the school courtyard and each one greeted by a parent or grandparent or other caregiver. I asked and was told that yes, indeed, this was their very first day at school. They couldn't have been more than four years old. They soon walked off with their escorts--there were only a couple waiting cars--and that was the end of this first school day. They had had an exciting time, and there was still a long afternoon to enjoy in the sun.

Every day this week I have heard the reverberations of the big school bus that transports a few children from our neighborhood to and from their colegio in the center of Algorfa, a few miles away. It comes at precisely 1:25, on its return-from-school trip. I have not heard it yet on its regular afternoon run. Afternoon school sessions only start when cooler weather comes, presumably in October.

The Foreign Community Speaks English

I always have a stack of newspapers beside the bed for night time reading, and last night just before I dropped off I was reading the latest Spaniaposten, a Norwegian bi-weekly. The article that caught my eye was a short one reporting on another article from the regional (Valenciano) newspaper Información. The subject was the large foreign (non-Spanish) population on the coast immediately south of Torrevieja and the fact that English is the predominant language. It was an interesting article and I will offer my translation from the Norwegian:
________________________
Orihuela.
NEWSPAPER CRITICAL OF LACK OF INTEGRATION

The large number of foreigners who live here and their lack of interest in learning Spanish have changed many areas in Vega Baja, especially Orihuela Costa, to more of an English colony than a Spanish area.

So begins an article in the regional newspaper Información. Almost 30,000 foreigners are registered as resident in this area a little south of Torrevieja.

MOSTLY BRITS
The largest group is the British, followed by Irish and Germans. Scandinavians also make up a large part of the immigrants and vacationers on this part of the coast.

OWN COLONY
The Spanish paper writes that immigrants integrate themselves here only to a small degree. The majority of foreigners create their own colonies, shopping in stores managed by their own countrymen where they can speak their own language, and they have little interest in learning Spanish as long as the foreign community can communicate among themselves in English.

USE ENGLISH
Local businesses use English to attract vacationers and residents from many of the large developments found in the area. Información writes that the area is full of "supermarkets," "grocery shops," "restaurants," and "irish pubs." [sic] Few establishments use Spanish to advertise their specials. The lack of use of Spanish in the area has made it almost obligatory to be able to speak English in order to get a job in the area, the paper goes on to say.
________________________
That is (my translation of) the article in Norwegian describing the Spanish article for its own readers (there are thousands of Norwegians along the entire Costa Blanca, plus many Swedes and Danes, and the odd non-Scandinavian person who can understand one of those languages). My reading suggests that the Norwegian article was offered without judgment or comment.

This morning I decided to find the original Spanish article and see whether it was equally non-judgmental.
Spaniaposten did a good reporting job, I think, but the original article was longer and had a few other tidbits.

To begin with, I like the Spanish title and lead:

With an English Accent
Tourists and residents along the coast of Orihuela hardly know what Spanish is.

The article goes on to say that Orihuela Costa is a small piece of Europe, but more international than many European capitals. In addition to what was reported in Spaniaposten, the original focuses on the need for Spaniards to learn other languages--English at the least--in order to get any job dealing with the public and mentions that a media explosion of periodicals, websites, and radio in several languages is burgeoning. Finally--and one wonders why Spaniaposten does not mention it--several lines were devoted to describing free Spanish courses starting in mid-September in the town of Pilar de la Horadada, on a basic and intermediate level, to promote "faster integration."

Well, integration may be beyond the range of possibilities, but it's obvious that many municipalities are stretching themselves to offer language courses to expose foreigners to even a little Spanish. We don't live on Orihuela Costa, but we live within a half hour of it, and there are probably nearly as many foreigners in our inland area. I'm still waiting to hear from my town about when this fall's language classes will start, even though they are not free. It is true that one has to work to expose oneself to native Spanish-speakers in this part of Spain. A "peculiar situation,"indeed, as Información calls it.

Hot Enough to Fry an Egg on the Sidewalk?

The first time I heard someone say that it was "hot enough to fry an egg on the sidewalk," I'm sure was in my hometown in Ohio, and probably in the house we moved to when I was five years old. The expression  immediately took root in my imagination. It did seem hot back in those summer days in the 1950s. I don't think anyone we knew had air conditioning in their house or their car then. We sure didn't. But that didn't matter anyway, because we didn't spend much time in the house or the car on those hot summer days when we were very young.

We played outside. Our house was in a new neighborhood without many shade trees, and without many kids, either. So I played with my sisters in the back yard or the driveway or the edge of the cornfield behind the house, or in the vacant lot two plots down the street. Sometimes we were joined by the girl across the street and sometimes by the boy from the big house down the street on the corner, neither of whom had any siblings near our ages.

I'll bet it was Brian who first told us one day that it was hot enough to fry an egg on the sidewalk. He was two or three years older than I was, so he would know expressions like that. Maybe he even knew how hot it had to be to fry an egg. He may have led us to believe that he had carried out this experiment already with some of his more grown-up friends. He was more daring than we ever were, because, after all, he was a boy and he was older. Still, I don't believe that he really had fried an egg on the sidewalk. I know he didn''t try it with us.

This week it was hot enough in Spain so that the plastic clothes pins I sometimes use to hang laundry on the line on my upstairs terrace were popping left and right from the heat. Snap, crackle and pop--no sooner did I pinch one open than a portion of it split off and fell onto the tile terrace. It happened not once, not twice, but several times. That's when I wondered whether it was hot enough to fry an egg on the sidewalk, or at least on the terrace tiles.

I didn't spend a lot of time designing this experiment. I just went downstairs to the kitchen and grabbed an egg out of the refrigerator and the egg timer from the refrigerator door. I came back upstairs, cracked the egg and dropped it carefully on a terrace tile as far away from my clean laundry as I could get. I set the timer for five minutes and escaped back inside to my air-conditioned office.

When the egg timer went off five minutes later, I dashed out to see the egg. No difference. I set the timer again for five minutes. This time I noticed a couple bubbles in the egg white on one side of the egg. Five minutes later the bubbles were still there but had not changed. No change after the next 15 minutes, either.

I set the timer for 30 minutes and went downstairs to prepare lunch. When I checked on my egg just before taking the salads to the downstairs sun room, there were a few bubbles in the yolk of the egg. Back downstairs for a half-hour lunch in the sun room--where the temperature gauge outside said 100 degrees F. in the shade. My post-lunch egg check (this was after an hour and a half of "frying") revealed that the yellow had broken enough for three small spurts to bleed out of the yolk. It was really not appetizing. I was glad that I had already had lunch and that I had not eaten eggs.

Not quite hot enough to fry an egg on the terrace tile

Three hours later, after an afternoon petanca game and shopping, we took this photo to the right. Some of the white of the egg had dried up, leaving only a thin shiny film on the tile; the other side of the white did live up to its name. Except for the three spots of yolk that had escaped and turned red, the yolk still looked fresh and shiny.

I didn't clean up the mess from this experiment until the next morning, and that was a mistake, because by that time two ants were on their way into the feast. But I shooed them away and scooped up the egg with a wad of paper towel. Underneath the outer curvature of the yolk it was still a little bit runny, just the way some people like their fried or poached eggs. But they wouldn't have wanted this one.

Requiem for a Palm

We lost a palm tree this week. It's the one in the center of this picture, just outside the sunroom where we eat lunch each day. It looks like what may be called a pineapple palm in the U.S, due to its rough, triangular-shaped pieces of bark and trunk that look like a pineapple. Like thousands of other palms of its type here in Spain, this has been attacked by a red beetle, or weevil. It had been on the danger list for over a year, with regular observation by a palm specialist from Elche, the nearby city of palms. This Tuesday when he came at noontime, he told us he would be back after siesta to take it out.

The beetle eats the trunk from the inside, but it takes months before outward signs of the disease appear. Yesterday our palm specialist encircled the trunk in his arms and shook it--and was able to move the trunk from side to side as much as if it were shaking in an earthquake. It was obvious it had to go.

We went out to do some shopping in the afternoon, planning to be back by the 6:00 hour that he had promised to return. When we drove into the street at 5:30, however, a huge truck and crane were in front of the house, and they were just lifting the tree off its shaky mooring, over the balustrade, and loading it, roots and all, into the disposal truck. The truck had a logo on it: Esperanza (hope).

We have been doing a lot of pruning and thinning out of the vegetation around our house since we bought it. It had been landscaped from bare nothing by a wonderful English gardener when first built 13 years ago. But that's one piece that we didn't want to thin out. There is a hole there now, and though the space is not large and can be replaced with something else, it can't be replaced with that particular type of palm, and I will miss it.

Another Spanish Holiday

Today is a national holiday in Spain. It is the festival of the Assumption of the Virgin Mary, celebrating Mary's bodily ascension into heaven upon her death.

It's hard to keep track of all the Spanish holidays, especially those of religious origin. Often they arrive before I am aware of them, and I am left at the door of a supermarket that is closed due to the holiday. Last month I noticed a sign on a store door saying the store had been closed due to the holiday (the day before) and I still don't know what the holiday was.

But this time I knew five days in advance there was going to be a holiday--there was a sign at the health club that it would be open only in the morning of August 15, "due to the bank holiday." No one at the club was able to tell me what the holiday was, but they did explain that, since they were in "the leisure business," they were permitted to be open--though only until 2:00 PM.  I knew the post office and the banks would be closed, of course, and factories, and probably the large commercial establishments. Even our gardeners had told us once that they couldn't come on their normal day because it was a holiday and they would be fined severely if they worked that day. My big question is always whether the food stores will be open.

So as we drove out this morning to my Spanish class (a private class, in my teacher's home, and therefore not regulated) we kept our eyes peeled for signs of life on the streets and byways. There was a lot of traffic, and sure enough, there were cars in the parking lot at Lidl, and at Consum, and then we saw them even at Mercadona, notorious for always being closed on holidays. After my class we made it to the fitness center for a workout session before their closing time at 2:00. Back home for lunch and then I was content to lock myself in my air-conditioned office for several hours of work--no day off for me.

So I never saw many signs of a holiday. Sure, there had been the usual fireworks on Saturday and Sunday evenings, but that's a common occurrence, especially in the summer, and not limited to weekends. And I remember now that Sunday and Monday were the two performance days for the city of Elche's annual Mystery plays, dating back to medieval times, which I hope I will see some year. If I had driven out after 2:00 I probably would have noticed that commercial life had closed up shop, though I suspect that many more people passed the remaining hours of the holiday at the beach than at church.

So it seems quite fitting to have spent some time today reading an article from the newspaper, in preparation for my next Spanish lesson, about the upcoming visit of the Pope to Madrid this week. Given the volume of demonstrations in the world, I hope it goes without too much open controversy. The gauntlet has already been thrown, however. On a previous visit to Spain last November, the Pope chastised Spain for its "anti-clericalism and a strong and aggressive secularism like that which was seen in the 1930s" [in the years immediately prior to the Spanish Civil War and the Franco era]. Indeed, the only question seems to be whether the Pope will continue his condemnations in his six scheduled open speeches or in smaller groups with journalists, as he carried it out in November.

We will know in a couple more days, but in the meantime, we can only speculate, and read of how the papal visit will deprive hundreds of workers their traditional August vacation, cost many euros, create traffic havoc, and has already seen the erection of more than a hundred portable confessionals.

¡Gazpacho!

It's gazpacho time.  As much as I hate Google constantly shoving Spanish ads at me on the Internet, and even though I was deeply involved in some real work when it happened the other day, I was glad when it served up several helpings of YouTube videos on making gazpacho. I got distracted long enough so I can't even remember what I am supposed to get back to.

Not that I went immediately to the kitchen to make gazpacho. I had already taken care of that, the easy way. The local Consum supermarket had a special on ready-made gazpacho when I was there earlier in the week. They had "traditional" and "suave," or soft. I picked up a liter of traditional and was keeping it in my refrigerator for a day when I had to make lunch in a hurry.

That came on Wednesday, after we went to the medical center in the morning and had to leave the house early in the afternoon for the cleaners to take over. It often takes me a half hour or more to make our usual lunchtime vegetable and fruit salads, but this day I did it in record time. In the space of ten minutes,  I diced a yellow and a red pepper, a cucumber, and a red onion, retrieved the gazpacho from the refrigerator, and poured the seasoned tomato-pepper liquid into two bowls. Luncheon was served.

Janet Mendel, the American-living-in-Spain cookbook author who I have mentioned before in connection with tortilla, calls gazpacho "Andalusian Liquid Salad." She includes several recipes in her book Cooking in Spain, and doubtless more in her subsequent books, but I think this recipe sums up the spirit of gazpacho best:

"Take a hot August afternoon at a little finca deep in the countryside. Pick the reddest, ripest tomatoes, sweet-smelling off the vine, a few green peppers, a cucumber, and dip them all in the cool water of a spring to rinse off the sun's heat. In the deep shade of a carob tree, start mashing all these ingredients in a big wooden bowl, adding a bit of garlic and onion stored under the straw in the shed. Pick a lemon from a nearby tree and add its tang to the gazpacho. Oil, bread and salt--brought from home in a cloth bag--complete the gazpacho. From the earthenware jug add cold water. Serve immediately and follow with a siesta!"

Janet Mendel, Cooking in Spain, 1996, c1987