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A food company sought clarification on whether its risotto-style products could benefit from the reduced VAT rate applicable to natural products. The Directorate General for Taxes (DGT) has ruled that, as a mixture of ingredients, it is classified as a prepared meal and not a natural product.
Companies producing mixed food items must distinguish between natural ingredients and prepared meals to ensure correct VAT application, as the latter does not qualify for the reduced rate reserved for natural products.
The tax team reviews your specific situation.
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