Updated VAT Rates in Spain

Effective July 2024

In light of the recent changes brought about by Royal Decree-Law 4/2024, dated 26 June 2024, the Spanish government has extended the VAT rate reduction for specific food products. These changes are important for consumers and businesses alike, as they affect the pricing of various essential goods. Below is a detailed overview of the new VAT rates, effective from 1 July 2024.



VAT Rates from 1 July 2024 to 
30 September 2024


Seed oils and pasta: The VAT rate remains at 5%.

0% VAT rate applies to:

  • Common bread, frozen common bread dough, and bread flours.
  • Milk in various forms, including natural, certified, pasteurised, concentrated, skimmed, sterilised, UHT, evaporated, and powdered, produced by any animal species.
  • Cheeses and eggs.
  • Fruits, vegetables, legumes, tubers, and cereals in their natural state.
  • Olive oils (reduced from 5% to 0%).

VAT Rates from 1 October 2024 to
31 December 2024


Seed oils and pasta: The VAT rate increases to 7.5%.

2% VAT rate applies to:

  • Common bread, frozen common bread dough, and bread flours.
  • Various types of milk produced by any animal species.
  • Cheeses and eggs.
  • Fruits, vegetables, legumes, tubers, and cereals in their natural state.
  • Olive oils.

VAT Rates from 1 January 2025 onwards


Seed oils and pasta: The VAT rate further increases to 10%

4% VAT rate applies to:

  • Common bread, frozen common bread dough, and bread flours.
  • Various types of milk produced by any animal species.
  • Cheeses and eggs.
  • Fruits, vegetables, legumes, tubers, and cereals in their natural state.
  • Olive oils.

Product ​​
Category

VAT Rate 
(Jan 1 - Jun 30, 2024)

VAT Rate
(Jul 1 - Sep 30, 2024)

VAT Rate
(Oct 1 - Dec 31, 2024)

VAT Rate
(Jan 1, 2025 onwards)

Seed oils, pasta

5%

5%

7.5%

10%

Common bread and related items

0%

0%

2%

4%

Milk (various types)

0%

0%

2%

4%

Cheeses and eggs 

0%

0%

2%

4%

Fruits, vegetables, legumes, tubers, cereals

0%

0%

2%

4%

Olive oils

5%

0%

2%

4%

These changes are crucial for businesses to update their pricing strategies and for consumers to be aware of the cost implications. The VAT adjustments reflect the government's effort to regulate food prices and ensure affordability for essential items.


For further information or specific inquiries, please contact RM Boulanger today.

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