September 29 () –
The measure adopted by the Government to place VAT at 0% on basic foods – bread, eggs, vegetables or fruit – and on olive oil declines from this Tuesday, October 1, and the rate will rise to 2 % from that day until December 31.
Specifically, last June the Government approved a royal decree by which measures were extended to face the economic consequences, as well as the social ones, derived from the conflicts in Ukraine and the Middle East, which have caused a rise in prices.
In this decree, the main novelty was the VAT on olive oil, which had already suffered a reduction from 10% to 5% and went to 0% from July 1 to September 30. Then it will be at 2% between October 1 and December 31.
The Minister of Finance, María Jesús Montero, announced at that press conference that olive oil would now become part of the basket of basic products and foods, so it will always have a super-reduced rate.
The super-reduced rate in Spain is 4%. This means that when rates return to normal, the VAT on olive oil will be 4% instead of the 10% that it had been bearing throughout this previous period.
Olive oil is the product in the shopping basket that has increased the most in the last year, according to CPI data for the month of August. Thus, in an interannual rate (August 2024 compared to the same month in 2023) its price rose by 25.1%, accumulating an increase of 170.5% since January 2021.
On the other hand, the 5% VAT rates for pasta and seed oils were also extended until September 30, so that from October 1 to December 31, following the recommendations of the Commission European Union for the gradual withdrawal of anti-crisis measures, the rate will be 7.5%.
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