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A farmer has requested clarification regarding the tax regime applicable to the sale of flour produced from their own cereals versus flour purchased from third parties. The DGT has ruled that flour manufacturing constitutes an industrial activity independent of agriculture, and that the resale of purchased flour is subject to the equivalence surcharge.
This ruling clarifies the distinction between agricultural activities and industrial processing for VAT, specifically regarding the application of the equivalence surcharge on the resale of processed goods.
The tax team reviews your specific situation.
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