Zara owner Inditex has announced it will absorb the VAT (value-added tax) increase in Spain, instead of passing the cost onto its customers.
The increase will mean consumers shopping at Zara will not see a difference in its prices.
The Spanish government announced a VAT increase from 18% to 21%. With this decision, Inditex will maintain its price stability policy, compensating for this impact with efficiency in diverse areas of its operations.
This price policy reaches all of the company’s brands: Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, and Uterqüe.