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A company has requested clarification regarding the VAT rate applicable to a non-stick spray used in baking. The Directorate-General for Taxes (DGT) has ruled that the reduced rate of 10% applies if the product is commonly used as a processing aid in food production.
This ruling clarifies the tax treatment for food additives and processing aids, ensuring that products used in food manufacturing benefit from the reduced VAT rate provided they meet the functional criteria of a processing aid.
The tax team reviews your specific situation.
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