From the 1 of January of 2023, The Government eliminates VAT on bread, flours, leche, fruits and vegetables, and lowers the VAT 10% To 5% in oil and paste for a period of six months.
According to him Royal decree law 20/2022, of 27 from December, response measures to the economic and social consequences of the Ukrainian War and support for the reconstruction of the island of La Palma and other situations of vulnerability.
Adapt the products of your ERP FacturaOne to the corresponding VAT
You ERP FacturaOne is prepared so that you can create the VAT of the 5% and modify your products to the corresponding VAT. This change is necessary during the six-month period established by the government.
List of basic necessities
- Common bread as well as frozen common bread dough.
- Bread-making flours.
- Milk produced by any animal species, of natural sea, natural, certified, pasteurized, concentrated, skim, sterilized, UHT, evaporated and powder.
- cheeses.
- Eggs.
- fruits, vegetables, vegetables, legumes, tubers and cereals, that have the status of natural products in accordance with the Food Code and the provisions issued for its development.
Foods that do not fall within the reductions
- Carne
- Fish
- Sugary drinks
- Alcoholic drinks
- etc…
The Government of Spain has announced thetemporary VAT reduction 4% To 0% in staple food. further, will lower the VAT on oil and pasta from the 10% current to 5%. A temporary measure to curb the consequences of rising food prices. These measures will be in force during the first semester of 2023.
President Pedro Sánchez has announced this reduction within a large package of anti-crisis measures. The call ‘social shield‘ of the PSOE-Podemos government maintains the limit of 2% to the rise in rents. It also maintains aid for public transport. Yes indeed, The Central Government has also announced the end of aid for 20 cents on gasoline, from the 1 from January. Gasoline is cheaper today than in March, when was this help established.
Currently theVAT is at 4% in staple food: fruits, vegetables, pan, flours, leche, queso, vegetables, legumes, potato and cereal. Now, for six months, VAT will disappear from these products. These products have risen significantly, especially bread and flour. Now this rise should mean a reduction of at least 5 pennies on each loaf of bread with the beginning of 2023.
IVA
VAT is an indirect tax, that any taxpayer pays, regardless of your income. There are three types of VAT: the ordinary of 21%, the reduced of 10% and the super-reduced 4%. VAT was born in 1986 with the entry of Spain into the EU and its amount has been increasing over the decades.
In Álava it is Provincial Council that manages VAT collection, with which an urgent adaptation of the foral regulations will be necessary. further, It will also be necessary to adapt the cash registers in different shops.
