- The tax directorate has published four binding rulings applying the 4% VAT rate to speciality bread as well.
- The change follows a Supreme Court judgment of October 2024 and a resolution by the directorate itself in February.
- Operators in the sector should check whether they charged the right rate and whether corrections or refunds are in order.
On Friday 21 March 2025 the Directorate-General for Taxes made public four binding rulings, V0280 to V0283/2025, dated 14 March and with the same content: the super-reduced 4% VAT rate applies to all the breads defined in Royal Decree 308/2019, the bread quality standard, and not only to common bread. The ruling expressly mentions sliced bread and burger buns.
Until now the tax authorities distinguished between common bread, at 4%, and speciality bread, at the reduced rate of 10%. The change of criterion affects bakeries, manufacturers, distributors and supermarkets, and also those who depend on them as customers. It is worth understanding where it comes from, how far it goes and what a company selling these products should review.
From the judgment to the rulings
The origin lies in the Supreme Court judgment of 15 October 2024, which decided a case about baguettes, regarded as speciality bread. The Court concluded that not applying 4% to that bread breaches the principles of neutrality, competition and equality, because the VAT Act does not distinguish between common and speciality bread and there is no justification for making the rate depend on a non-tax regulation.
The Directorate-General for Taxes took on that doctrine in a resolution of 24 February 2025, published in the BOE on 27 February, which binds the tax administration bodies and defines bread by reference to Royal Decree 308/2019. This week’s rulings apply it to specific cases. It also extends to products made with gluten-free flour that meet the definition of bread.
Which products are in and which are out
In are the breads that fit the definitions of Royal Decree 308/2019, whether common or speciality, and semi-finished products meeting those definitions, including gluten-free versions. According to the rulings, sliced bread and burger bread, which until now were taxed at 10%, may now benefit from 4%. Brioche is also cited as an example of speciality bread to which the same logic would apply.
What does not fit that definition, in principle, stays at the reduced rate of 10%. That is why it is essential to look at the exact nature of each product and not only its commercial name. A recipe with a lot of fat, sugar or filling may fall outside, and classification depends on compliance with the quality standard, so the product’s technical sheet is key.
What to review
According to that doctrine, the directorate’s criterion has retroactive effects limited by legitimate expectations and limitation periods. This raises a practical question: if in years still open 10% was charged to customers or borne on purchases of speciality bread, there may be grounds to correct invoices, regularise self-assessments or claim refunds of undue payments, within the general four-year limitation period.
Before acting, it is advisable to review the product catalogue, classify products against the quality standard, calculate the economic effect and decide with the tax adviser whether it is worth correcting, and how to pass it on to customers and suppliers. Invoicing systems and prices must also be adjusted going forward. Keep the documentation of bread sales and purchases for the open years, because it will be the basis of any claim. This information is general and does not replace analysis of a specific case.
A change in the VAT rate looks small on each invoice, but in a high-volume sector it can make the difference.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
