The VAT reduction on some essential products, one of the approved measures to support families

As of January 1, and valid until June 30, 2023, the VAT applicable to certain essential products is modified, in accordance with the provisions of RD Law 20/2022 of December 27, on response measures to the economic and social consequences of the war in Ukraine and support for the reconstruction of the Island of La Palma and other situations of vulnerability.

• The following rates will apply to the following products:
  • 5 per 100 for olive and seed oils and pasta - the rate of the surcharge will be 0.625 per 100-. The rate may vary from May 1, 2023 depending on whether the interannual rate of underlying inflation for the month of March is less than 5.5%.
  • 0 per 100 for the following products (the rate may vary from May 1, 2023 depending on whether the interannual rate of underlying inflation for the month of March is less than 5.5%):
    -Common bread, as well as frozen common bread dough and frozen common bread intended exclusively for making common bread.
    -Bread flours.
    -The following types of milk produced by any animal species: natural, certified, pasteurized, concentrated, skimmed, sterilized, UHT, evaporated and powdered.
    -The cheeses.
    -The eggs.
    -Fruits, vegetables, legumes, tubers and cereals, which have the status of natural products in accordance with the Food Code and the provisions issued for its development.
• The rate of 5 percent for intra-community deliveries, imports, and acquisitions of natural gas, briquettes, and "pellets" from biomass and wood for firewood is extended until December 31, 2023. The applicable equivalence surcharge rate will be 0.625 per 100.
• The rate of 5 per 100 is extended until December 31, 2023 for deliveries, imports and intra-community acquisitions of electrical energy made in favor of holders of electricity supply contracts whose contracted power is less than or equal to 10 kW, and of the holders of electricity supply contracts who are recipients of the electricity social bonus and have recognized vulnerable status.
• The rate of 4 per 100 for deliveries, imports and intra-community acquisitions of disposable surgical masks is extended until June 30, 2023.
• The rate of 0 per 100 is extended until June 30, 2023 for deliveries, imports and intra-community acquisitions of certain goods and provision of services necessary to combat the effects of SARS-CoV-2, as well as for the purposes of the special regime of the equivalence surcharge.

 For any questions regarding the application of the new VAT rates, you can go to our offices or contact us through our website. CONTACT