Spain Unifies 4% VAT Rate for All Bread Types, Aligning with EU Principles

• Spanish Directorate General for Taxation set a 4 percent VAT rate for all bread types
• Previously, common bread had a 4 percent rate while special breads had a 10 percent rate
• Supreme Court ruled different VAT rates for similar goods violate EU principles
• New resolution applies 4 percent VAT to all bread varieties, including gluten-free
• Resolution is retroactive, subject to legal constraints
• Change is binding on tax authorities and businesses
• VAT rate reduction could boost competitiveness of specialty breads
• Consumers may benefit from lower prices and more variety
• Aligns Spain’s VAT policy with EU legal principles and ensures fair competition

Source: bdo.global

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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