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A company requested clarification on the VAT rate applicable to olive grinding services performed to produce oil without acquiring ownership of the fruit. The Directorate General for Taxes (DGT) ruled that this constitutes a work execution subject to the reduced rate of 10%.
This ruling clarifies the tax treatment for agricultural processing services where the processor does not own the raw materials, ensuring the application of the reduced VAT rate for such services.
The tax team reviews your specific situation.
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