VAT on gluten-free breads reduced in Spain
Following a ruling by the Supreme Court in Spain, the Ministry of Finance has reduced the general sales tax on special breads, including gluten-free breads, from 10 percent to 4 percent, according to a regulation published in the official state gazette this week.
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.
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