As of January 1, 2025, significant tax modifications have come into effect in Spain, affecting certain basic products, energy, and other sectors. These changes involve both increases and reductions in the VAT rates applied to various products, which will impact both consumers and businesses. Below, we detail the main changes and how they will affect your finances and business management.
These products will rise to the super-reduced rate of 4%:
The VAT rate will increase from 7.5% to 10%.
The VAT on yogurt will be reduced from 10% to 4% starting from December 22, 2024.
The VAT on electricity will rise back to 21%, from the reduced rate of 10% that was in effect until the end of 2024.
The regulated gas tariff will increase by 10% in 2025, although it will remain 22% cheaper than a year ago.
The social bonus discounts for vulnerable consumers will also undergo changes:
For severely vulnerable consumers:
Following a 4.27% increase in November 2024, the price of the butane cylinder will be updated again in January 2025.
A 10% increase in the regulated gas tariff for individuals.
The Moves Plan for the purchase of electric vehicles will be extended until June 30, 2025. The 15% income tax deduction, up to 3,000 euros, for the purchase of an electric vehicle will remain throughout the year.
| Product | VAT Rate 2024 | VAT Rate 2025 |
|---|---|---|
| Olive oil, bread, milk, eggs, cheese, fruits, vegetables | 2% | 4% |
| Seed oils and pasta | 7,5% | 10% |
| Yogurt | 10% | 4% |
| Electricity | 10% | 21% |
| Natural gas (TUR Rate) | 10% | 21% |
If your business handles products affected by the VAT rate changes, it is essential to update your billing and ERP systems to reflect these new tax rates. Remember to review both VAT and the Equivalent Surcharge to ensure they are applied correctly to your products and services.
For more information on how to implement these changes in your business, contact a specialised tax advisor.
The VAT rate changes in 2025 will have a significant impact on the cost of essential products and basic services. It is crucial to stay informed and adapt to these changes in order to manage your purchases, sales, and taxation effectively.
