State It will verify it through “a price development monitoring system”. VAT reduction on food from 1 January full benefit to the consumer are not transferred to business margins with price increases.
With the new pre-war measures taken in Ukraine, the reduction in the tax rate “will be entirely in the interest of the consumer”, as stated in the royal decree published in the Official State Gazette (BOE) this Wednesday and came into effect immediately. The discount amount may be used, in whole or in part, to increase the commercial profit margin with the consequent increase in prices”.
The text adds that the effectiveness of this measure will be confirmed through a test. Tracking System the development of prices, “regardless of the actions corresponding to the National Markets and Competition Commission within its mandate”.
The standard also details: food VAT discount application periods approved by the government and will be in effect from the outset. From January 1 to June 30, but can be reversed on May 1. depending on the development of the underlying inflation.
Like this VAT reduction from 10% to 5% on pasta and olive and seed oils It will take effect in the first half of the year, but may be reversed from May 1, 2023 if the annual core inflation rate for March for March, published in April, is below 5.5%.
The latest core inflation rate was 6.3% in November.
attribution The abolition of VAT for essential foods poses the same caveat: it will return to 4% from 1 May 2023 “If the annual core inflation rate for March, announced in April, is below 5.5 percent.”
The BOE also details that the temporary suspension of the VAT reduction and special electricity tax on electricity, as well as the electricity generation value tax, will continue through 2023.