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V0481-20 27 February 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · harina de castaña

Chestnut flour taxed at 4% if suitable for breadmaking, or 10% otherwise

A query was made regarding the VAT rate applicable to the sale of chestnut flour in various formats. The DGT has determined that the rate depends on whether the product can be used for bread production.

The question raised

Applicable tax rate for Value Added Tax purposes to said good.

The DGT's ruling

Chestnut flour shall be taxed at 4% if, objectively considered, it can be used in the preparation of any type of bread, regardless of the purchaser's intended use. If this condition is not met, the 10% tax rate shall apply.

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