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A cosmetics company has requested clarification on the VAT rate applicable to the online sale of hair infusion plant sachets and hydrolats. The Directorate-General for Taxes (DGT) has ruled that these products do not qualify for reduced VAT rates.
Businesses selling specialised cosmetic or botanical products must ensure they apply the standard VAT rate rather than reduced rates, as these items do not meet the specific criteria for tax relief.
The tax team reviews your specific situation.
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