VAT reduction for specific goods
Growing inflation across Europe has compelled several EU Member States to adjust their VAT rates. Often, these modifications have targeted everyday basic merchandise to create more affordable goods and services for residents. Spain had initially introduced some temporary VAT concessions in January 2023 by zero-rating specific food products. The Spanish government has now confirmed that these measures will continue up to 30 June 2023. Initial forecasts indicate that the fiscal measures Spain is initiating are working as inflation continues to plummet in the country. However, the inflation is still high enough for the Spanish government to continue the temporary zero-rating of specific food products, albeit for a temporary period. Spain is a compliant territory for Tungsten Network and our e-invoicing solution supports all valid VAT rates in the country.