VAT on gluten-free breads reduced in Spain

This has unified the VAT applied to different types of bread in the southern European country, as the most favorable 4 percent was calculated after traditional bread, as it is considered an essential food, just like milk, eggs, vegetables and fruit.

The decision comes after a bakery company sued the Spanish tax office because it did not accept that the VAT on their products was calculated at 4 percent instead of 10 percent in the tax return they submitted.

In its objection, the company argued that the case law of the Court of Justice of the European Union establishes that similar goods and services must be valued equally for VAT purposes.