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A query is made regarding the VAT rate applicable to 'boilies' and 'pellets' used as fishing bait. The DGT determines that, if these products are suitable for animal feed, the reduced rate of 10% applies regardless of their final destination.
Question raised: Applicable tax rate.
Supplies, intra-Community acquisitions, and imports of 'boilies' and 'pellets' are taxed at 10% if they are habitually and suitably used for animal feed. This criterion applies without considering the actual purpose or destination to which the acquirer applies the product. If they do not meet said suitability for animal nutrition, the general rate of 21% shall apply.
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