2024-02-03 13:00:02
With economic difficulties on the agenda, the effective application of certain fiscal tools is necessary, such as, for example, the Super reduced VAT.
Its main objective is to promote social equity and universal access to essential products and services, easing the financial burden on consumers and ensuring that basic needs are met in a more fair and equitable manner.
We tell you the differences between this tax and others in the same category, as well as the products and services in which super-reduced VAT is applied.
What is super-reduced VAT?
In Spain, there are three main types of Value Added Tax (VAT) that are applied to the sale of goods and services with the aim of taxing consumption. These types are the general, the reduced and the super reduced:
- He IVA general It is 21% and applies to most goods and services. This is the most common type and is used when a different type is not specified for a particular product or service.
- He reduced VAT It is 10% and applies to certain goods and services that are considered necessary, but not essential. Some examples of products that benefit from this reduced rate include non-basic foods, passenger transportation, hospitality, and certain cultural services such as tickets to cinemas and theaters.
- He Super reduced VAT is 4% and applies to products and services considered essential. This includes basic foodstuffs such as bread, milk and eggs, books, newspapers and magazines, medicines and public housing.
In addition to these three types, there are also special cases where a VAT of 0% o one 5% VAT to certain operations. For example, 0% VAT applies to exports, intra-community deliveries and certain operations related to aviation and international shipping. The 5% rate has recently been applied to the purchase of homes for young people.
It is important to note that VAT rates may vary depending on tax policies and economic needs. Therefore, it is essential to stay updated with the information provided by the Tax Agency to know the applicable rates at all times.
Products and services with super-reduced VAT
The Ley 37/1992 of the Value Added Tax, in its article 91.2, specifies the articles and services to which this type of VAT is applied:
- Super reduced VAT on products: Among the products that benefit from the super-reduced VAT we find basic foods such as bread, flour, cereals, milk, cheese, eggs, fruits and vegetables
- Also included in cultural assets such as books, newspapers and magazines that do not contain only advertising
- In it health fieldapplies to medications, as well as prostheses, orthoses and internal implants for people with disabilities
- Some services with super-reduced VAT They are telecare, home help, day and night centers and residential care.
- Los vehicles for people with reduced mobility and the officially protected housing They are also subject to this type of VAT
It is important to highlight that, in response to exceptional situations, such as the COVID-19 pandemic, temporary modifications have been made to products that are considered essential. For example, masks now have a super-reduced VAT until the first half of 2022.
When is reduced VAT applied?
He reduced VAT It applies to a series of products and services that are included in the Ley 37/1992 of Value Added Tax. Among them are the following:
- Basic foods such as bread, milk, fruits, vegetables, legumes, cheeses and eggs
- Medicines for human and animal use, as well as pharmaceutical and health products
- Homes, garages and annexesprovided certain construction or rehabilitation requirements are met
- Transportation of travelers and their luggageboth urban and interurban
- Hospitality servicessuch as bars, hotels and restaurants
- Appetizer to museums, libraries, art galleries and sporting events
- Books, magazines, newspapers and other products of plant origin used in obtaining live flowers and plants
What products lower VAT in 2024?
The year 2024 brings with it some changes to VAT that affect certain food products. The Government has extended until June 30, 2024 the reduction or elimination of VAT of some foods considered basic or essential, in order to alleviate the effects of inflation and the economic crisis.
- Between the products that reduce VAT to 5% There are pastas, which previously had a rate of 10%.
- Between the products that eliminate 4% VAT These include bread, bread flour, milk, cheese, eggs, fruits, vegetables, legumes, potatoes and cereals. These products have the status of natural according to the Food Code and are essential for food consumption.
- The big news is that olive oil, which had suffered a 70% price increase in 2023, now has a 0% VAT.
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