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V0160-21 3 February 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Livestock shearing to be taxed at 21% VAT as it is not eligible for the reduced rate

A query was raised regarding whether livestock shearing services provided to an individual with sheep for family subsistence could qualify for the 10% reduced VAT rate. The Directorate General for Taxes (DGT) ruled that this service is not listed in the law as eligible for such a rate.

The question raised

Applicable tax rate for Value Added Tax purposes.

The DGT's ruling

The animal shearing service is not included among the services that may apply the reduced rate of 10% pursuant to Article 91.1.2, 3rd of Law 37/1992. Therefore, this service shall be taxed at the general rate of 21%, regardless of whether the recipient is an entrepreneur, a professional, or an individual.

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