On December 27, 2022, the Spanish government announced a new package of inflation-relief measures which will reduce, and even remove, VAT on many essential food items. The reduced rates are going to be in place from January 1 until June 30, 2023.
The VAT cuts are introduced for the following items:
- Basic food (such as milk, bread, fruits and vegetables, eggs, cheese, etc.) – rate is reduced from 4% to 0%
- Oil and pasta – rate is reduced from 10% to 5%