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The VAT reduction on basic products ends this Tuesday, October 1st. The measure was adopted to curb the high inflation that followed the outbreak of the war in Ukraine.
Photo : CL/Equinox
Applied since January 1, 2023, the reduction in the VAT rate on basic food products is no longer in force from today. The measure had, however, been extended several times to deal with galloping inflation.
But the price increase in Spain has shown a clear decline for several months, authorizing the government to relax its measures. In September, inflation fell by 0.8 points to stand at 1.5%, the lowest increase recorded since March 2021.
Read also: Inflation in Spain at its lowest level
However, VAT will not be applied exactly as before: certain products which did not benefit from the reduced rate have been included in the list of essential products. This is particularly the case for olive oil, which has increased by 170% in less than four years. The Spanish government now considers it a staple food, with a VAT rate reduced to just 2%.
Foods that go from 0 to 2% VAT
– olive oil
– lait
– eggs
– fruits
– cheese
– dried vegetables
– cereals
– vegetables
– pain
– flours
Foods which go from 5 to 7.5% VAT
– pasta
– other oils
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