Starting next month, the VAT on extra virgin olive oil in Spain will undergo a significant change. This fiscal adjustment has generated various questions among consumers and producers. Below, we answer some of the most frequently asked questions on this topic.
What type of VAT does olive oil currently have?
Currently, extra virgin olive oil is exempt from VAT, meaning it has a tax rate of 0%. This temporary measure was implemented from July 1, 2024, and will be in effect until September 30, 2024.
When does the VAT on olive oil change in 2024?
The VAT on extra virgin olive oil will change on October 1, 2024. From that date until December 31, 2024, the tax rate will be 2%.
When does the VAT on olive oil change in 2025?
Starting January 1, 2025, the VAT on extra virgin olive oil will be adjusted again, becoming part of the basic food products with a super-reduced rate of 4%.
Does the VAT change also apply to Arbequina and Empeltre extra virgin olive oil?
Yes, the VAT change affects all varieties of extra virgin olive oil, including Arbequina and Empeltre varieties. These varieties will also be subject to the new tax rate of 2% starting in October 2024 and 4% starting in January 2025.
Application of the VAT change by La Gaeta
The brand La Gaeta, specialized in the artisanal production of extra virgin olive oil, will apply this VAT change in its online store. This includes their extra virgin olive oils of the Arbequina and Empeltre varieties, as well as their premium range oils, which will reflect the new tax rate in their prices from the mentioned dates. La Gaeta’s premium range includes two varieties, premium Arbequina and premium Empeltre, presented in exclusive design bottles.
