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A company has requested clarification on the VAT rate applicable to the sale of carob gum used as a thickening agent in the food industry. The Directorate General for Taxes (DGT) has ruled that the reduced rate of 10% applies if the product is suitable for human or animal nutrition.
This ruling clarifies the tax treatment for food additives, ensuring that carob gum qualifies for the reduced VAT rate provided it meets nutritional standards for humans or animals.
The tax team reviews your specific situation.
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