Spain applies temporarily 0% rate to certain foodstuffs
Spain applies a temporarily zero rate to certain foodstuffs until 30 June 2023
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
- 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.