- This resolution concerns the VAT rate applicable to bread.
- It addresses a recent Supreme Court ruling.
- Previously, the VAT Law established a super-reduced rate of 4% for common bread, while special bread was taxed at 10%.
- The Supreme Court ruling determined that applying different VAT rates to special bread violates the principle of VAT neutrality, affecting free competition.
- The ruling recognizes that certain special breads should be taxed at 4%, like common bread, if they are perceived as similar foods by the average consumer.
- The General Directorate of Taxes modifies the criteria and establishes that the super-reduced VAT rate of 4% will apply to all products defined in the Royal Decree 308/2019 (common and special bread), gluten-free breads, regardless of their composition.
- The resolution has retroactive effects (ex tunc) from the entry into force of the regulations, except for limitations due to the principle of legal certainty.
- This resolution ensures legal certainty for consumers and bakeries.
- From now on, all types of bread are taxed at 4%, eliminating the difference between common and special bread.
- The resolution aligns Spanish legislation with the doctrine of the Court of Justice of the EU and promotes tax equality in the bakery sector.
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.