The Spanish government, led by President Pedro Sánchez, announced new anti-inflation measures for 2024, including maintaining a zero percent VAT on basic food for at least six more months. The 5 percent VAT rate on pasta and oil will also continue. Additionally, the government plans to gradually reverse tax cuts on gas and electricity due to falling energy prices. This will also apply to the VAT rate on gas, which will return to normal values in February. The decision to maintain the zero percent VAT on food is driven by high food price inflation in Spain and the difficulty of reversing such a reduction once implemented. In the Netherlands, there were discussions about reducing VAT on food, but the Tax Authorities deemed it technically impossible.
Source Taxlive
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