Spain Implements Zero VAT Rate on Olive Oil to Combat Inflation – Effective July 1, 2024

• Spain introduces a zero VAT rate on olive oil from July 1st
• Olive oil is now considered a basic necessity along with bread, fruit, and vegetables
• The Spanish government led by President Pedro Sánchez is reducing the price of olive oil by about 50 cents per liter
• Spain produces about half of the world’s olive oil, but recent years have seen lower yields due to drought and heat
• Inflation in Spain is a long-standing issue, exacerbated by the energy crisis following the Russian invasion of Ukraine
• The government has taken measures to temporarily reduce VAT on basic products like olive oil to help households cope with rising prices
• The price of a liter of extra virgin olive oil has increased by over 174% since February 2021

Source: taxlive.nl

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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