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V0557-23 8 March 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Supply of drinks with on-site auxiliary services subject to 10% VAT

A company supplying alcoholic beverages at fairs with auxiliary services for immediate consumption queries the applicable VAT rate. The DGT states that if sufficient auxiliary services are provided for immediate consumption, the rate is 10%; otherwise, it constitutes a goods delivery subject to general VAT.

The question raised

Applicable tax rate for Value Added Tax purposes for the aforementioned operation. Procedure for the regularization, where applicable, of incorrectly charged tax amounts.

The DGT's ruling

Catering services are taxed at 10% if they consist of the supply of food or beverages with sufficient ancillary services for immediate consumption. If no ancillary services are provided, the operation constitutes a supply of goods and, being alcoholic beverages, is taxed at the general VAT rate. To rectify excess VAT charged, the customer must be identified in order to refund the amount.

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