Spain – Extension of reduced VAT Rate for basic food.

Spanish government announced that the 0% VAT Rate on basic food such a bread, flour, milk, cheese, eggs, fruits, vegetables, and cereals will be extended till 30th September 2024. As of 1st October 2024, the VAT rate will increase to 2% and as of 1st January 2025 will increase to 4%.

VAT rate on Olive oil which was reduced from 10% to 5% as of 1st July 2024 was reduced further to 0% and will revert to 5% on 1 January 2025. In addition the VAT rate for pasta will remain 5% till 30th September 2024 and will increase to 7,5% as of 1st October 2024.

The reduction of VAT on basic food products was introduced on 1st January 2023 as part of the government’s Anti Inflation package and was extended multiple times.