Latest VAT rate changes in Spain

Are you aware of the latest
VAT rate changes in Spain ?

Since 1 January 2023, new VAT changes have come into effect in Spain.

The Spanish government has urgently passed the Royal-Decree 20/2022 on December 27, 2022 temporarily reducing the VAT rate of certain products, from January 1, 2023 until June 30, 2023.
Below the list of the products concerned by these VAT reductions :

► Olive and seed oils, and pasta, will be charged at 5%, instead of 10%,

► The following products will be charged at 0% instead of 4%:

- Common bread, as well as frozen common bread dough and frozen common bread intended exclusively for making common bread, and bread flours,

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

- Cheeses and eggs,

- Fruits, vegetables, legumes, tubers and cereals, which have the status of natural products in accordance with the Food Code.

Note that the applicable tax rates will be 10% and 4%, respectively, as of May 1, 2023, if the interannual rate of underlying inflation for the month of March, published in April, is less than 5,5%.

The Budget Law 31/2022 of December 23, has also reduced the tax rate for feminine hygiene products, condoms and other non-medicinal contraceptives to 4%.

If you are concerned by any of the changes mentioned above, be sure to apply the appropriate rate(s).

Get in touch with us today so we can help you with these processes !

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