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A tuna canning processing company has requested clarification on the applicable VAT rate for its services. The DGT has ruled that a 10% rate applies if the operation constitutes a works contract that transforms products into a distinct good, whereas a 21% rate applies if no transformation takes place.
This ruling clarifies the distinction between service provision and works contracts in the food processing sector, affecting tax liability based on the degree of product transformation.
The tax team reviews your specific situation.
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