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V0402-14 14 February 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Reduced 10% VAT rate applies to certain chemicals if suitable for agricultural or forestry use

A chemical manufacturer has requested clarification on the applicable VAT rate for its products. The DGT has ruled that the reduced rate of 10% applies only if the products are suitable for agricultural, forestry, or livestock use and fall under the categories of fertilisers, herbicides, or pesticides; otherwise, the standard rate of 21% shall apply.

The question raised

Tax rate applicable to the supplies of said products.

The DGT's ruling

The reduced rate of 10% applies to goods such as fertilizers, herbicides, or pesticides when, due to their objective characteristics, packaging, presentation, and state of preservation, they are capable of being used directly, habitually, and appropriately in agricultural, forestry, or livestock activities. For this purpose, both requirements must be met: the objective suitability for use and belonging to the categories mentioned in the law. If these requirements are not met, as in the case of cleaning products or insecticides for environmental use, the general rate of 21% shall apply.

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