Farewell to the reduced VAT on food. Starting today, October 1, the price of some basic products will rise following the end of the anti-crisis measure that supported families to offset the effects of price increases due to inflation and the wars in Ukraine and the Middle East, which had reduced or eliminated VAT on products such as bread, milk, olive oil, and fruits and vegetables. Grocery bills are going up again.
Special mention goes to olive oil, which will see its VAT rise from 0% to 2% until the end of this year. However, starting January 1, 2025, it will not return to the previous 10%, as it will maintain a super-reduced rate (4%) for being considered a basic food.
The 2% VAT increase on olive oil represents a change in the tax rate applied to this product. VAT, or Value Added Tax, is a tax that affects most goods and services in many countries, and an increase in its percentage can have various implications for both consumers and producers.
