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A company has requested clarification on whether its eye and contact lens solution is subject to a 10% or 21% VAT rate. The DGT has ruled that the 10% rate applies if the product is classified under Chapter 30 of the Combined Nomenclature and meets the requirements for direct use by the end consumer.
Companies manufacturing or distributing eye care solutions may benefit from a lower VAT rate, provided they strictly adhere to pharmaceutical classification and consumer use criteria.
The tax team reviews your specific situation.
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