Spain has removed tax on olive oil up until September.
The Spanish administration temporarily waives VAT on olive oil due to price surge. From July to September, zero VAT will be applied, as announced by the government. Starting October, a two percent VAT will be implemented on the sale of olive oil, gradually increasing to four percent, similar to other basic foodstuffs.
Finance Minister María Jesús Montero explained that this action underscores "the importance of olive oil in the Mediterranean diet and a healthy lifestyle."
Spain takes the crown as the top olive oil producer and exporter globally. In their culinary traditions, it's used extensively - from cooking, garnishing sandwiches, salads, veggies, and various dishes. According to the Agriculture Ministry, the average Spanish household consumed approximately 6 liters per person last year, in contrast to 0.4 liters internationally.
However, prices have skyrocketed lately, not only due to inflation but also a result of a prolonged drought that lowers production. As per the Agriculture Ministry, the price of olive oil in Spain has jumped by a staggering 272 percent compared to September 2020.
In regular grocery stores, a 5-liter bottle can set you back over 50 euros, forcing some to opt for less expensive cooking oils. To address this, the government had already decreased the VAT on olive oil from 10 to 5 percent.
