- The urgent measures outlined in the Royal Decree-law 4/2024 aim to address the economic and social consequences of conflicts in Ukraine and the Middle East.
- The reduced VAT rates on food items, such as pasta and olive oil, will be maintained at 5% and 0% until September 30, 2024, to help combat inflation and benefit the population, especially those in need.
- After September 30, 2024, the VAT rates will increase to 7.5% and 2% for different food items until December 31, 2024, when prices are expected to normalize.
- Olive oil will see a reduction in VAT from 5% to 0% until September 30, 2024, and will be classified as a basic necessity with a reduced VAT rate of 4% starting January 1, 2025.
- The VAT rates for various food products will change from 0% to 2% or 5% depending on the item and the time period.
- The equivalent surcharge rates will also change based on the VAT rates applied to the products.
Source: audiconsultores-etlglobal.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
