Compliance Alert - Extension of zero VAT rate on basic foodstuff

On 28 June 2023, the Spanish government announced the Royal Decree-Law 5/2023 which adopts and extends certain measures on economic and social support and situations of vulnerability.

According to the provisions of this Decree, deliveries, imports and intra-community acquisitions of the following products with the specified VAT rate will apply until 31 December 2023:

• The 5% VAT rate:

- Olive and seed oils, and pasta.

• The 0% VAT rate:

- Bread, frozen bread dough and frozen bread intended exclusively for making bread;

- Flour;

- Certain types of milk produced by any animal species: natural, certified, pasteurized, concentrated, skimmed, sterilized, UHT, evaporated and powdered;

- Cheese, eggs;

- Fruits, vegetables, legumes, tubers and cereals which have the status of natural products.