Last June 27, the Official State Gazette (BOE) published the transitional changes in the VAT rates applicable to certain essential products. As of October 1, 2024, these new tax rates will be implemented, which will be in force until December 31, 2024.
This tax adjustment responds to the need to mitigate the impact of inflation on food and, at the same time, to favor a progressive economic recovery. Here are the main changes:
- Seed oils and pasta products
- Current VAT rate (until September 30, 2024): 5%.
- New VAT rate (from October 1 to December 31, 2024): 7.5% 2.
- Commodities such as bread, flour, milk, cheese, eggs, fruits, vegetables, legumes and cereals.
- Current VAT rate (until September 30, 2024): 0%.
- New VAT rate (from October 1 to December 31, 2024): 2%.
- Olive oil
- Current VAT rate (until September 30, 2024): 0% New VAT rate (from October 1 to December 31, 2024): 2% 3.
- New VAT rate (from October 1 to December 31, 2024): 2%.
Equivalence surcharge
Additionally, the equivalence surcharge applicable to these products will also be affected:
- For products moving from 5% to 7.5% VAT, the equivalence surcharge will increase from 0.6% to 1%.
- For products going from 0% to 2% VAT, the equivalence surcharge will increase from 0% to 0.26%.
Companies must update their VAT rates before the date of application of these changes to avoid errors in their daily operations.
For more information, please consult with Tax consulting
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