Temporary reduced rates in Spain for 2024

Spain has extended the zero rate to certain foodstuffs until 30 June 2024, while for some energy products the VAT rate is raising during 2024.

VAT rate for foodstuffs in Spain 

Spain approved a temporary 0% VAT rate applicable to certain basic foodstuffs. The measure was taken during 2023 and extended a few times. At the moment, the zero rate for certain foodstuffs will continue to apply at least until 30 June 2024

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.

Similarly, olive oils, seeds, and pasta are temporarily under a 5% VAT rate. The 5% reduced rate on these products was also extended at least until 30 June 2024.

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 31 December 2023.

Have a look at our Spanish VAT manual, including an overview of Spanish VAT rates.

VAT rate for energy products in Spain

Additionally, the VAT rate for certain energy products changed since 1 January 2024.

  • Electricity was raised from 5% (temporary reduced rate during 2023) to 10% VAT rate from 1 January to 31 December 2024.
  • Natural gas and wood for energy are also subject to 10% VAT rate from 1 January to 31 March 2024, instead of the former 5%.

During 2023, the Government applied a special 5% VAT rate applicable on certain energy supplies.

Find here the current VAT rate for energy and fuel products in Spain. 

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