Spain approved a temporary 0% VAT rate applicable to certain basic foodstuffs until 30 June 2023.

The basic foodstuffs included in the temporary zero VAT rate are the following:

Common bread, including frozen bread.
Flour for bread.
Animal milk
Cheese
Eggs
Fruits, vegetables, legumes, and cereals that are considered natural products.

The measure is agreed to fight the impact of current levels of inflation. This is why, the 0% rate applies, in principle, from 1 January to 30 June 2023; however, the 4% VAT rate will apply by 1 May in case the inflation rate for March is below 5.5%.

This measure joins to the temporary 5% VAT rate applicable on certain energy supplies until 31 December 2023.

Find the official announcement here.

Find here an overview of Spanish VAT rates.

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