New Developments in Import VAT in Spain for 2024

The entry into force of Royal Decree-Law 4/2024, dated June 26, extends and updates tax measures to address the economic and social consequences of the conflicts in Ukraine and the Middle East.

These measures include significant changes in VAT and the equivalence surcharge for certain basic foods, such asolive oil and other essential food products. If you are dedicated to importing,it is crucial that you are aware of the changes coming into effect on October 1, 2024.

Increase in VAT to 2% for basic food products

The new Royal Degree-Law 4/2024 introduces changes in the VAT rate for basic food products, which will apply temporarily during the second half of 2024. As an importer, it is essential that you consider these new rates in your daily operations.
From October 1 to December 31, 2024, a 2% VAT and an equivalence surcharge of 0.26% will apply to the following products:

• Common bread, frozen bread dough, and frozen common bread.
• Bread-making flours.
• Milk (natural, certified, pasteurized, skimmed, evaporated, and other types).
• Cheeses.
• Eggs.
• Fruits, vegetables, legumes, tubers, and cereals.
• Olive oil.

7.5% VAT from October to December 2024 for seed oils and pasta

From October 1 to December 31, 2024, the VAT rate for seed oils and pasta will increase to 7.5% with an equivalence surcharge of 1%. This adjustment will have a direct impact.

Permanent reduction of VAT on olive oil starting in 2025

A major change introduced by Royal Decree-Law 4/2024 is the permanent modification of the VAT rate for olive oil.
Starting on January 1, 2025, olive oil will be subject to a reduced VAT rate of 4% permanently, as established in Article 91.Two.1.1.º of Law 37/1992 on Value Added Tax. This measure will have a direct impact on the product’s tax burden, making it very important to consider for the planning of your future imports.

How do these VAT changes affect you?

If you are an importer, distributor, or marketer of basic food products, it is essential to stay informed about these changes to avoid potential penalties and adjust your prices accordingly.

Do you need advice on how import VAT will impact your business? Contact our team of customs and tax experts! We help you optimize your operations and comply with current regulations.