The Government of Spain reduces the VAT on olive oil to 0% until September
The Spanish Executive has taken an important measure to ease the economic pressure caused by geopolitical tensions and rising prices. From July 1 to September 30, 2024,the VAT applied to extra virgin olive oil has been reduced to 0%. This decision seeks to benefit families and protect the most vulnerable groups that depend on this essential product in their diet.
Which foods benefit from this discount?
In addition to olive oil, other staple foods also benefit from the 0% VAT reduction. These include common bread, bakery flours, milk of any animal species, cheeses, eggs and fruits, vegetables, legumes, tubers and cereals. This measure aims to alleviate inflation and ensure that essential foods are accessible to all.
What will happen after September?
From October 1 and until December 31, 2024, the VAT on extra virgin olive oil will rise to 2%. However, there is good news in the long term: from January 1, 2025, olive oil will become part of the staple food group, taxing permanently at the super-reduced rate of 4%. This guarantees its accessibility and benefits both consumers and the Spanish economy.
La Gaeta: Quality and Accessibility of its Olive Oil
The La Gaeta brand has responded quickly to the government measure to reduce VAT to 0% for extra virgin olive oil. La Gaeta has applied this discount to both Empeltre extra virgin olive oil and Arbequina extra virgin olive oil, two emblematic varieties of the region as members of the D.O. of Terra Alta. In addition, lovers of premium Empeltre and premium Arbequina range oils will also will benefit, since La Gaeta has extended this policy to its most exclusive products.
This decision reflects La Gaeta‘s commitment to quality and accessibility, ensuring that the oils are available to all consumers during this exceptional period.
The lowering of VAT to 0% for extra virgin olive oil is a temporary but significant measure and helps to ease the financial burden on families and ensures that this essential product is within reach of everyone. The inclusion of olive oil in the staple food basket is an important step towards a healthy diet and a stronger economy.
