Spain: Reduced VAT Rates on Face Masks and Electricity Extended and Zero Rate on Basic Foods

Robert Pelletier
January 6, 2023

As announced by the Spanish Ministry of Finance on 27 December 2022 and pursuant to Royal Decree-Law 20/2022, the reduced VAT rates applied to supplies of face masks and electricity have been extended. Surgical face masks will maintain the 4% VAT rate until 30 June 2023, and electricity will maintain the 5% VAT rate until 31 December 2023.

Further, basic food items such as bread, flour, milk, cheese, eggs, fruits, vegetables, legumes, tubers, and cereals will temporarily apply the zero VAT rate from 1 January 2023 and until 30 June 2023.

The announcement can be found here and the decree can be found here (in Spanish).

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Robert Pelletier

Robert Pelletier is a Regulatory Counsel at Sovos Compliance. Within Sovos’ Regulatory Analysis function, Robert specializes in research and analysis of global VAT and GST. Robert received a B.A. magna cum laude in Legal Studies from Quinnipiac University and a J.D. cum laude from Suffolk University Law School. Robert is a member of the Massachusetts Bar.
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