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The Government Reduces VAT on Basic Foods to 0%



Basic food items, such as eggs, dairy and fruit, will no longer have a 4% tax (IVA/VAT) to combat the increase in the price of the shopping cart caused by inflation, and will now have a zero tax rate until June 30, 2023.

Oils and pasta will also experience a tax reduction from 10% to 5% during the first half of the year.

There will also be a one-off payment of 200 euro that will benefit 4.2 million households with incomes of less than 27,000 euro.

Electricity will continue with a 5% IVA on the bill, as well as deliveries of natural gas, briquettes or ‘pellets’.

Surgical masks will maintain a 4% IVA during the first half of 2023 due to their mandatory nature in public transport and other areas, while diagnostic tests and vaccines will continue at 0%.



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