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A private chef who prepares dishes using materials supplied by the customer queries whether to apply 21% or 10% VAT. The DGT determines that the activity constitutes a catering service and thus must apply the reduced rate of 10%.
Question raised: Applicable tax rate for its services in Value Added Tax, either 10 or 21 percent.
Catering activities are considered the provision of services and are taxed at 10% if they are not limited to the mere supply of standardized meals. In the case of home catering services, the service dimension is usually predominant. If the activity were a mere delivery of goods without complementary services, the rate would be 21%.
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