Spain Cabinet Approves Royal Decree Extending Reduced VAT Rates in Energy Sector Due to War

The Spanish Council of Ministers Dec. 27 approved a royal decree extending reduced VAT rates in energy sector due to the ongoing Russia-Ukraine conflict. The royal decree includes measures that would: 1) extend the reduced VAT rate of 10 percent on qualifying supplies of electricity until Dec. 31, 2024, on qualifying supplies of natural gas until March 31, 2024, and on qualifying supplies of pellets, briquettes, and firewood for heating until June 30, 2024; 2) extend the reduced VAT rate of 5 percent on olive, seed oils, and pasta until June 30, 2024; and 3) extend the zero-rated VAT on ...