Spain have extended the 0% VAT rate on basic foods items until the 30th June 2024.

The 0% VAT rate introduced in Spain on basic food due to continuing inflation was due to expire on 31st December 2023, has now been extended until the 30th June 2024, after which it will revert to the previous VAT rate of 4%

The 0% VAT rate will apply to the following food products:

- Breads and bread flours;
- Milk (natural, certified, pasteurised, concentrated, skimmed, sterilised, UHT, evaporated and powdered milks)
- Cheeses and  eggs,
- Fruits, vegetables, legumes, tubers and cereals, which are natural products according to the Food Code.

The reduced VAT rate of  5% which applies to olive oil, seed oil  and pasta products which was also due to expire on 31st December 2023 has been extended until 30th June 2024, after which it will revert to the previous VAT rate of 10%

Increase in VAT rate on certain energy products that were subject to 5% VAT until 31st December 2023.

Electricity supplies (contracted power less than or equal to 10 kW and recipients of the social bonus) will be subject to 10% VAT from 1st January to 31st December 2024.

Natural gas will be subject to 10% VAT from January 1 to March 31, 2024.

Pellets, briquettes and firewood, ecological substitutes for natural gas from biomass and intended for heating systems, will be subject 10% VAT from 1st January  to 30th June 2024.