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A company has requested clarification on whether agricultural protection and shading netting for greenhouses qualifies for the reduced VAT rate. The Directorate-General for Taxes (DGT) has ruled that the 10% rate applies only if the products are considered plastics for use in mulching, tunnels, or greenhouses.
This ruling clarifies the VAT treatment for agrotextiles, ensuring that only specific netting used for crop protection or greenhouse structures benefits from the reduced rate, rather than all agricultural netting products.
The tax team reviews your specific situation.
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