From 1st October 2024, the prices of several basic food items will rise in supermarkets due to the end of the temporary VAT reduction that the Government had implemented to ease the tax burden on essential products. This anti-crisis measure, introduced in response to the impact of the war in Ukraine and rising prices, will no longer be in effect, resulting in an increase in the cost of some of the most purchased products by Spanish families.

Foods that will increase in price from October.

Foods that will rise in price with the end of the VAT reduction

With the conclusion of this measure on 30th September, products that were previously exempt from VAT, such as bread, milk, eggs, fruit, and olive oils, will now be subject to a 2% tax rate. This will affect both consumers and small retailers, who will also face the impact of the equivalence surcharge.

Among the food items that will see an increase from 0% to 2% in VAT are:

  • Olive oil
  • Milk (of all types)
  • Bread (including frozen)
  • Eggs
  • Cheese
  • Fruit
  • Vegetables
  • Cereals
  • Legumes
  • Tubers
  • Bread-making flours

VAT increase from 5% to 7.5% on selected products

Among the food items that will rise in price, some products will experience an even greater increase. Pasta and seed oils will see their VAT rise from 5% to 7.5%, directly affecting their price in supermarkets from October onwards.

Impact on Spanish households

The end of this tax reduction comes at a time when households are already facing food price inflation. Olive oil, an essential product in Spanish cooking, has seen significant price hikes due to inflation, and this new 2% levy could further increase its cost.

What happens from January 2025?

From January 2025, some products, such as olive oil, could see a VAT reduction to 4%, according to Government forecasts. However, over the coming months, consumers will feel the impact of these increases on their shopping basket.

This adjustment marks the end of a temporary measure that had helped to reduce the cost of basic products, in a Government effort to mitigate the impact of the economic crisis and the rising prices of energy and raw materials.