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A company asks which VAT rate applies to hospitality services (food and drinks) offered in a bullring. The DGT confirms that, as the consumption is on-site, the 10% VAT rate applies.
Question posed: Applicable tax rate for Value Added Tax purposes.
The supply of food and beverages for immediate consumption, even if prepared to order, is subject to the 10% tax rate. Consumption is considered immediate when it takes place at the entrepreneur's establishment and is served by their staff. Likewise, sales at installed bars that are freely accessible before, during, or after an event are considered supplies for immediate consumption.
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