On 27 June 2023, the Spanish Council of Ministers approved a Royal Decree-Law that provides for the extension of the VAT rate reduction for basic food products that was announced earlier in the month. With effect from 1 January 2023, the VAT rate was reduced from 10% to 5% on olive and seed oils and pasta and from 4% to 0% on basic food products including bread, bread flour, different type of milk, cheese, eggs, and fruits, vegetables, legumes, tubers, and cereals qualifying as natural produc…