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Practical VAT manual 2023.

8. Tax rates

• Natural gas, briquettes, pellets and firewood

With effect from January 1, 2023 and valid until December 31, 2023 , the rate of 5 percent of will be applied VAT ##3##on intra-community deliveries, imports and acquisitions of natural gas, briquettes and pellets from biomass and wood for firewood . 

The rate of the equivalence surcharge applicable, during the time period mentioned in the previous paragraph, to deliveries of briquettes and pellets from biomass and to firewood will be 0.62 percent .

• Masks, in vitro diagnostics and Sars Cov-2 vaccines

With effect from January , the First Additional Provision of Royal Decree-Law 29/2021, of December 21, is amended to establish that:

  • The application of the tax rate of 4 percent VAT to intra-community deliveries, imports and acquisitions of disposable surgical masks referred to in the Agreement of the Interministerial Commission on Drug Prices, of November 12, 2020, provided for in article 7 of Royal Decree-Law 34/2020, of November 17, on urgent measures to support business solvency and the energy sector, and in tax matters, is extended until June 30, 2023 .

  • The application of the tax rate of 0 percent VAT to intra-community deliveries, imports and acquisitions of health products for in vitro diagnosis of SARS-CoV-2 , the vaccines against SARS-CoV-2 authorized by the European Commission, and the provision of related transport, storage and distribution services , as well as for the purposes of the special regime of the equivalence surcharge (which will be 0 percent), is extended until June 30, 2023 .

• Electric power

With effect from July 1, 2022 and valid until December 31, 2023 , the VAT rate of 5 percent will be applied to intra-community deliveries, imports and acquisitions of electrical energy made in favor of:

  • Holders of electricity supply contracts, whose fixed power term is less than or equal to 10 kW , regardless of the supply voltage level and the contracting modality, when the arithmetic average price of the daily market corresponding to the last calendar month prior to the last day of the billing period has exceeded 45 €/MWh .

  • Holders of electricity supply contracts who are recipients of the electricity social bonus and have been recognized as severely vulnerable or severely vulnerable at risk of social exclusion , in accordance with the provisions of Royal Decree 897/2017, of October 6.

• Food

With effect from January , 2023 and valid until December 31, 2023

  • The 5 percent VAT rate will be applied to intra-community deliveries, imports and acquisitions of olive oils and seeds and pasta .

    The type of equivalence surcharge applicable to these operations will be 0.62 percent .

    However, the applicable tax rate will be 10 percent as of November 1, 2023 , if the annual rate of underlying inflation for the month of September, published in October, is less than 5.5 percent. In this case, the type of equivalence surcharge applicable to these operations will be 1.4 percent .

  • The 0 percent VAT rate will be applied to intra-community deliveries, imports and acquisitions of the following products:

    • common bread , as well as frozen common bread dough and frozen common bread intended exclusively for the production of common bread, as well as baking flours .

    • The following types of milk produced by any animal species: natural, certified, pasteurized, concentrated, skimmed, sterilized, UHT, evaporated and powdered.

    • The cheeses and the eggs .

    • The fruits, vegetables, legumes, tubers and cereals that have the status of natural products.

    The type of equivalence surcharge applicable to these operations will be 0 percent .

    However, the applicable tax rate will be 4 percent as of November 1, 2023, if the annual rate of underlying inflation for the month of September, published in October, is less than 5.5 percent. In this case, the type of equivalence surcharge applicable to these operations will be 0.5 percent .

• Feminine hygiene products

With effect from 1 January 2023 , the 10 percent tax rate applicable to sanitary pads, tampons, panty liners, condoms and other non-medicated contraceptives becomes 4 percent .