Update: | Compliance Alert - Extension of VAT rate reduction for basic food |
Date: | 2024-07-18 |
The Spanish Tax Authority has announced that the decreased VAT rate of 0% for basic food, which includes bread, milk, fruits, vegetables, and more, will be extended until 30 September 2024.
The rate change is scheduled as follows:
- 2% beginning 1 October 2024
- 4% beginning 1 January 2025
The VAT rate on olive oil, which has recently been to 0%, will be increased to 5% beginning 1 January 2025. Pasta will have a VAT rate of 5% until 30 September 2024 and will increase to 7.5% beginning 1 October 2024.
The VAT reduction for basic food has been in place since 1 January 2023 to curb inflation. The reduction has been extended many times. This new schedule is intended to close reductions and return to more standard rates.