The Spanish government has approved a new package of fiscal measures, included in Royal Decree-Law 5/2023, which adopted and extended certain measures in response to the economic and social consequences of the war in Ukraine, among others. Below, we explain what they consist of.
Measures for taxation of activity and maintenance of economic and social stability
A specific VAT rate is established for certain supplies, imports and intra-Community acquisitions of foodstuffs, with effect from 1 January to 31 December 2023:
A 5% VAT rate will be applied on supplies, imports and intra-Community acquisitions of olive oil, seeds or pasta. The tax rate will be 10% from 1 November 2023, if the year-on-year rate of underlying inflation in September is less than 5.55%.
The 0% VAT rate will be applied to supplies, imports and intra-Community acquisitions of the following foodstuffs: common bread, frozen common bread dough, bread-making flour, cheese, eggs, fruit, vegetables, pulses, tubers and cereals. The tax rate will be 4% as from 1 November 2023, if the year-on-year rate of underlying inflation in September is less than 5.55%.
Measures to incentivise electric vehicles and recharging points
In order to reduce gas emissions and atmospheric pollution, two new personal income tax deductions are regulated:
Taxpayers can deduct 15% of the value in the purchase of vehicles until December 2023. The maximum deduction base will be 20,000 euros, and will be made up of the purchase value of the vehicle, including the expenses and taxes derived from its acquisition, discounting the amounts subsidised by public aid.
They will also be able to deduct 15% of the amounts paid, from 30 June to 31 December 2024, for the installation in a property they own of battery recharging systems for electric vehicles not used in an economic activity. The maximum deduction base will be 4,000 euros per year and will be made in the tax period in which the installation is completed, which may not be later than 2024.
In the area of corporate income tax, a new tax incentive has been introduced to allow for the depreciation of new electric vehicle charging infrastructures.
For more information on these new measures, please contact our Tax Department at CINC Asesoría:
933 030 060
972 505 100
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