Spanish VAT Rate Changes 2023

Due to continuing economic challenges, the Spanish government has implemented a number of VAT reductions this year. The Spanish VAT rate changes for 2023 are:

VAT on food

The Spanish Government announced on December 27th, 2022, that the applicable VAT rates for basic foodstuffs would be temporarily reduced in 2023. The following changes for VAT on food now apply:

A 4% to 0% reduction of VAT on food for:

Certain types of bread, including frozen bread dough and frozen bread intended exclusively 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.

VAT on feminine hygiene products and non-medicinal contraceptives

As of January 1, 2023, feminine hygiene products and non-medicinal contraceptives, including condoms, now have a VAT rate of 4%, reduced from 10%.

VAT on electricity and gas

In an effort to combat inflation, the Spanish government has reduced the VAT on electricity supplies, provided they meet certain conditions. The VAT rate will now be 5%, reduced from 10%.

There’s also a VAT reduction in place from 10% to 5% for natural gas, briquettes and pellets from biomass, and wood for firewood.

The reduction of VAT on gas and electricity will remain in place until December 31, 2023.