Spain Extends Tax Relief Measures to Support Households Facing Inflation

• Spanish Government extends tax relief measures to support households facing high inflation
• Zero percent rate of value-added tax maintained until June 30, 2024 for bread, flour, and milk
• Five percent reduced rate of VAT applies to cheese, eggs, fruits, vegetables, legumes, potatoes, pasta, cooking oils, and cereals
• 10 percent rate of VAT on supplies of electricity extended throughout 2024
• 10 percent rate of VAT on gas extended for the first three months of the year
• Special Electricity Tax (IEE) rate reduced to 2.5 percent until the end of March and then 3.8 percent until the end of June
• Windfall profits taxes on energy and banking sector and solidarity tax on large fortunes extended
• Energy companies can deduct investments made into eligible industrial projects and decarbonization projects from their liability.

Source: answerconnect.cch.com

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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