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.
