María Jesús Montero, Minister of Finance, Spain. Photo Wikimedia

Spain extends VAT cuts on essential food products

28 June, 2024

Spain’s Ministry of Finance announced in a release on Tuesday, 25 June 2024, that the Spanish Council of Ministers approved a Royal Decree-Law which extends the VAT rate reduction for basic food Items.

The reduced rates were initially set to end on 30 June, 2024, but they have now been extended until 30 September, 2024.

As per the announcement, basic food products such as bread, milk, or fruits will continue to have a 0% tax (previously 4%), to which olive oil will be added. Pasta and other seed oils will continue at 5% (previously 10%) for the next three months.

Starting 1 October, 2024, the tax rate for seed oils and pasta will be set to 7.5%, while the rate for basic food products, including olive oil, will be set to 2%. By 1 January, 2025, the standard reduced rates of 10% and 4% will take effect.

Spain

«

Previous post
UAE: Companies licensed in March-April must register for corporate tax by June 2024

Next post
Portugal approves tax reform to boost capital market, affordable housing

»

Spain: MOF issues Order on e-invoicing software systems

November 05, 2024

The Spanish Ministry of Finance(MOF) has released an Order HAC7/1177/2024 of 17 October 2024 concerning computerised billing systems for entrepreneurs and professionals on 28 October 2024. The publication of this Ministerial Order marks the

Spain to abolish energy sector windfall tax while extending tax on banks

November 04, 2024

The Spanish government is reportedly set to finalise an agreement that will terminate the windfall tax on the energy sector and extend the windfall tax on the banking sector. Earlier, the Spanish government has issued the “Law 38/2022” which

Peru, Spain to resume tax treaty talks next year

October 22, 2024

Peru and Spain will resume income tax treaty negotiations in March 2025, as announced by Luis Ibérico, Peruvian ambassador to Spain. during an event on 15 October 2024. An income tax treaty was signed in 2006, but it was never

Paraguay, Spain income tax treaty enters into force

October 15, 2024

The income tax treaty between Paraguay and Spain took effect on 14 October 2024. This agreement aims to enhance economic relations, encourage investments, and enhance bilateral cooperation in tax matters between the two countries. It seeks to

European Commission refers Spain, Cyprus, Poland, Portugal to court for failing to transpose Pillar Two Minimum Taxation Directive

October 07, 2024

The European Commission (EC) decided to refer Spain, Cyprus, Poland, and Portugal to the Court of Justice of the European Union for failing to notify measures for the transposition into national law of Council Directive (EU) 2022/2523 of

Spain consults crypto-asset reporting framework

October 04, 2024

The Spanish Ministry of Finance and Public Administration has initiated a public consultation on a draft bill to implement EU Directive 2023/2226 (DAC8), which which integrates the OECD’s crypto-asset reporting framework (CARF) into the regulatory