Key takeaways
- Essential food VAT cuts: Basic food items like bread, milk, cheese, eggs, fruits, and vegetables now have a 0% VAT rate, while pasta and olive oil are reduced to 5%.
- Lower VAT on essentials: Feminine hygiene products and non-medicinal contraceptives now carry a reduced 4% VAT rate.
- Energy relief measures: VAT on electricity, gas, and biomass fuels has been lowered to 5% until December 31, 2023, to help offset inflation.
In short: The Spanish VAT rate changes for 2023 cut VAT on basic foods from 4% to 0%, and on pasta and oils from 10% to 5%. Feminine hygiene products and non-medicinal contraceptives dropped from 10% to 4%. VAT on electricity and gas fell from 10% to 5% until December 31, 2023.
Update: These temporary food cuts have since ended. Since January 1, 2025, Spain applies 4% VAT to basic foods and olive oil, and 10% to pasta and seed oils. A temporary 10% rate on electricity, natural gas, biomass briquettes and pellets, and firewood ended on May 31, 2026. These went back to 21% on June 1, 2026.
Due to ongoing economic challenges, the Spanish government brought in a number of VAT reductions in 2023. The Spanish VAT rate changes for 2023 are:
What changed for VAT on food in Spain?
Spain temporarily cut VAT on basic foodstuffs in 2023. The Spanish Government announced on December 27th, 2022, that the VAT rates for basic foodstuffs would be temporarily reduced in 2023. The following changes for VAT on food apply:
A 4% to 0% reduction of VAT on food for:
Certain types of bread, including frozen bread dough and frozen bread meant only for making bread, as well as bread flours.
Animal milk in the form of natural, certified, pasteurized, concentrated, skimmed, sterilized, UHT, evaporated, and powdered.
Cheese and eggs.
Cereals, fruits, vegetables, legumes, and tubers.
A 10% to 5% reduction of VAT on food for:
Pasta, and also olive and seed oils.
What is the VAT rate on feminine hygiene products and non-medicinal contraceptives?
The Spanish VAT rate on feminine hygiene products and non-medicinal contraceptives is 4%, down from 10%. This applies as of January 1, 2023, and includes condoms. Related reading: Portuguese VAT Changes 2023.
What changed for VAT on electricity and gas?
Spain cut VAT on electricity supplies from 10% to 5% to fight inflation, as long as certain conditions are met. We cover this in more detail in Greece VAT changes 2023.
There’s also a VAT cut from 10% to 5% for natural gas, briquettes and pellets from biomass, and wood for firewood. You can also read Reduced application of ‘use and enjoyment rules’ in Spain from 2023.
The lower VAT on gas and electricity stays in place until December 31, 2023.
What are Spain's VAT rates now?
Spain's general VAT rate is 21%, with reduced rates of 10% and 4%, according to the Spanish Tax Agency (AEAT). The 0% rate on basic foods was temporary and no longer applies.
- 21%: most goods and services, including electricity and natural gas since June 1, 2026.
- 10%: pasta and seed oils, among other items.
- 4%: basic foods such as bread, milk, eggs, fruit and vegetables, plus olive oil.
When do online sellers from other EU countries charge Spanish VAT?
Once their cross-border sales to EU consumers pass €10,000 a year, sellers charge VAT where the goods are consumed. For sales to Spanish consumers, that means the Spanish rate.
The €10,000 threshold is EU-wide, not per country. It applies to total cross-border sales to consumers across the EU. Below it, sales may stay subject to VAT in the seller’s own country, according to the European Commission.
Above the threshold, sellers can use the One Stop Shop (OSS) instead of registering in Spain. OSS returns are quarterly and due by the end of the following month. Payment is due with the return.
For example, an Italian online shop above the threshold sells pasta to a consumer in Madrid for €20 before VAT. Pasta is taxed at 10% in Spain, so the shop charges €2 of Spanish VAT. It reports the sale in its next OSS return.
What does this mean for businesses selling in Spain?
Spain changed the rates on food and energy several times between 2023 and 2026. If you sell these products to Spanish customers, check the rate that applies on the date of each sale.
Make sure your invoicing, checkout and marketplace tax settings use the current rate for each product. Wrong rates can lead to underpaid VAT, or to overcharging customers. For registration, filing and rate details, see our Spain VAT guide.
How Taxually handles this
Taxually’s CrossTax handles VAT registration, VAT, OSS and IOSS returns and fiscal representation in the countries you sell into, and checks your sales data against 250+ validation rules before each filing. OneTax then pays every tax authority with one bulk payment in your chosen currency.
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Frequently asked questions
What are the new Spanish VAT rates for food in 2023?
In 2023, Spain temporarily reduced VAT on essential food items to help consumers cope with inflation. The VAT rate dropped from 4% to 0% for staples like bread, milk, cheese, eggs, fruits, and vegetables, while pasta and olive oil saw a reduction from 10% to 5%.
How has Spain changed VAT rates on electricity, gas, and hygiene products?
From January 1, 2023, the VAT on electricity and gas was reduced from 10% to 5%, and feminine hygiene products and non-medicinal contraceptives dropped from 10% to 4%. These reductions will remain in effect until December 31, 2023.
Are Spain's 2023 VAT cuts still in force?
No. Since January 1, 2025, basic foods and olive oil are taxed at 4%, and pasta and seed oils at 10%. Electricity and natural gas have been taxed at 21% since June 1, 2026.
What is the standard VAT rate in Spain?
The general VAT rate in Spain is 21%. Reduced rates of 10% and 4% apply to certain goods and services, such as food.
What VAT rate applies to electricity in Spain?
Electricity has been taxed at the general 21% rate since June 1, 2026. A temporary 10% rate applied until May 31, 2026.
Do EU online sellers have to charge Spanish VAT?
Yes, once their total cross-border sales to EU consumers pass €10,000 a year. They then charge the Spanish rate on sales to Spanish consumers and can report it through the One Stop Shop.
What VAT rate applies to pasta in Spain?
Pasta has been taxed at 10% since January 1, 2025. It was taxed at 5% during the temporary cuts.
