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A company requested clarification on the VAT rate applicable to a wine-based flavoured beverage with 14% alcohol content intended for use as a condiment. The DGT determined that, as it is an alcoholic beverage, it must be taxed at the standard rate.
This ruling clarifies that wine-based flavourings used in cooking are subject to the standard VAT rate rather than reduced rates, due to their alcoholic content.
The tax team reviews your specific situation.
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