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A company trading in cheese and dairy products has requested clarification on the applicable VAT rate for its products. The DGT has ruled that the reduced rate of 4% applies only if the products meet the definitions of cheese and processed cheese set out in Royal Decree 1113/2006.
Businesses selling cheese must ensure their products strictly adhere to the specific legal definitions and quality standards to benefit from the reduced 4% VAT rate; otherwise, the standard rate may apply.
The tax team reviews your specific situation.
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