- Spain’s Council of Ministers has approved an extension of the VAT rate reduction for basic food products until 31 December 2023.
- The reduction, which lowered the VAT rate from 10% to 5% on olive and seed oils and pasta and from 4% to 0% on basic food products, was originally announced in December 2022 and was scheduled to end in June 2023.
- However, the extension is subject to the underlying inflation for September not being less than 5.5%.
- Other measures of Royal Decree-Law 20/2022, such as the VAT reductions on electricity and gas, do not need to be extended as they already apply until 31 December 2023.
Source Orbitax
