- 5% VAT rate will apply to certain electricity and certain fuel supplies until 31 December 2023
- Electricity: reduction to 5%, instead of 10%, in the VAT rate applicable to all components of the electricity bill for electricity contracts whose fixed power term does not exceed 10 kW, when the average monthly wholesale market price in the month prior to the month of invoicing has exceeded 45 €/MWh. Also, for most vulnerable consumers, the 5% VAT rate shall apply irrespective of the price of electricity on the wholesale market. Temporary reduction on electricity applies from 1 July 2022 and until 31 December 2022.
- Natural gas and briquettes and pellets from biomass and wood for firewood: reduction to 5%, with no further conditions. The temporarily reduced VAT rate will apply from 1 October, 2022 and will be valid until 31 December, 2023
- Spain approved a temporary 0% VAT rate applicable to certain basic foodstuffs until 30 June 2023. The basic foodstuffs included in the temporary zero VAT rate are Common bread, including frozen bread, Flour for bread, Animal milk, Cheese, Eggs and Fruits, vegetables, legumes, and cereals that are considered natural products. The measure is agreed to fight the impact of current levels of inflation. This is why, the 0% rate applies, in principle, from 1 January to 30 June 2023; however, the 4% VAT rate will apply by 1 May in case the inflation rate for March is below 5.5%.
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