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V0131-22 25 January 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

A 10% VAT rate applies to hemp seeds and natural flowers, and 21% to the remaining products

A company inquired which VAT rate applies to hemp buds, seeds, and CBD extracts. The DGT determines that seeds and natural flowers are taxed at 10%, while the remaining products are subject to the general rate of 21%.

The question raised

Question raised: Applicable tax rate for Value Added Tax purposes

The DGT's ruling

Hemp seeds and natural flowers (including dried or freeze-dried ones) are taxed at the reduced rate of 10%. Products that are not seeds or natural flowers, such as extracts or products that do not meet plant reproduction requirements, are taxed at the general rate of 21%.

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