New features of regulations 2022

Royal Decree-Law 20/2022 of 27 December on measures to respond to the economic and social consequences of the Ukraine war and to support the reconstruction of the island of La Palma and other vulnerable situations

The following modifications are introduced in Act 37/1992, of 28 December, on Value Added Tax (LIVA):

• Natural gas, briquettes, pellets and firewood

  Effective as of January 1, 2023 and valid until December 31, 2023, the rate of 5 per one hundred of VAT on supplies, imports and intra-Community acquisitions of natural gas, briquettes and pellets from biomass and wood.

  The applicable equivalence surcharge rate, during the time frame mentioned in the previous section, for deliveries of briquettes and pellets from biomass and wood for firewood, will be 0.625%.

• Face masks, in vitro diagnosis and Sars Cov-2 vaccines

  With effect from 1 January 2023, the first Additional Provision of Royal Decree-Law 29/2021 of 21 of December, adopting urgent measures in the energy field to promote electric mobility, self-consumption and the deployment of renewable energies, with the following effects:

  • The application of the tax rate of 4% of VAT on supplies, imports and intra-Community acquisitions of masks disposable surgical procedures referred to in the Agreement of the Ministerial Committee on Medicines Prices, of 12 November 2020, as provided for in the article 7 of Royal Decree-Law 34/2020, of 17 November, on urgent measures to support business solvency and the energy sector, and in tax matters, it is extended until 30 June 2023.

  • The application of the tax rate of 0% of VAT on supplies, imports and intra-Community acquisitions of certain goods and services required to combat the effects of SARS-CoV-2, as well as for the purposes of the special equivalence surcharge scheme (equivalence surcharge of 0%), provided for in the Seventh Final Provision of Royal Decree-Law 35/2020 of 22 December, is extended until 30 June 2023. These are healthcare products for the in vitro diagnosis of SARS-CoV-2, SARS-CoV-2 vaccines authorised by the European Commission and related transport, storage and distribution services.

• Electrical energy

  Effective as from 1 July 2022 and valid until 31 December 2023, the rate of 5% of VAT will be applied to supplies, imports and intra-Community acquisitions of electricity carried out in favour of:

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

  2. Holders of electricity supply contracts that are recipients of the social electricity bond and are recognised as a severe vulnerable or severe vulnerability at risk of social exclusion, in accordance with the provisions of Royal Decree 897/2017 of 6 October, by the that the figure of the vulnerable consumer, the social bond and other protection measures for domestic electricity consumers is regulated.

• Food

  Effective from 1 January 2023 and valid until 30 June 2023:

  1. The rate of 5% of VAT will be applied to intra-Community supplies, imports and acquisitions of the following products:

     1. Olive and seed oils.

     2. Meetful pasta.

     The rate of the equivalence surcharge applicable to these transactions will be 0.625%. However, the applicable tax rate will be 10% from May 1, 2023, if the year-on-year rate of the underlying inflation for March, published in April, is less than 5.5%. In this case, the rate of the equivalence surcharge applicable to these transactions will be 1.4%.

  2. The rate of 0% of VAT will be applied to intra-Community supplies, imports and acquisitions of the following products:

     1. Common bread, as well as the frozen common bread dough and frozen common bread intended exclusively for the preparation of common bread.

     2. Panifiable flour.

     3. The following types of milk produced by any animal species: Natural, certified, pasteurised, concentrated, skimmed, sterilised, UHT, evaporated and powdered.

     4. Cheese.

     5. Eggs.

     6. Fruit, vegetables, pulses, tubers and cereals, which are considered natural products in accordance with the Food Code and the provisions established for their development.

     The rate of the equivalence surcharge applicable to these transactions will be 0%.

     However, the applicable tax rate will be 4% from May 1, 2023, if the year-on-year rate of the underlying inflation for March, published in April, is less than 5.5%. In this case, the rate of the equivalence surcharge applicable to these transactions will be 0.5%.