The Spanish Directorate General of Taxes issued a resolution (BOE-A-2025-3950) regarding the VAT rates applied to bread on 24 February 2025.
The resolution, which was published in the Official Gazette on 27 February 2025, clarifies the VAT treatment for different types of bread. According to the new rules, ordinary bread will continue to benefit from a super-reduced VAT rate of 4%, while special bread will be subject to a higher VAT rate of 10%.
A key aspect of this resolution follows a significant Supreme Court ruling from October 2024. The court’s decision confirmed that various types of special bread, including gluten-free bread, should also be eligible for the 4% VAT rate. This adjustment is intended to ensure compliance with EU VAT neutrality principles, which aim to create a level playing field in the market.
The resolution applies retroactively, meaning it will affect transactions made before its publication. This retroactive application is designed to uphold legal certainty, ensuring businesses and consumers are not disadvantaged by the changes. Ultimately, the measure seeks to promote fairness and competition in the bread market while aligning with broader European VAT rules.
Earlier, Spain’s tax authorities introduced a new special VAT regime for groups of companies (REGE), effective from 2025.
Companies must use form 039 to notify their election to apply or waive the REGE for VAT purposes, the advanced REGE arrangement, and the monthly VAT refund system.
