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V0711-16 23 February 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

Reduced 10% VAT rate applies to the supply of natural flowers and wreaths by funeral companies

A funeral services company requested clarification on the VAT rate applicable to the supply of flowers and wreaths invoiced separately. The Directorate General for Taxes (DGT) ruled that these supplies are subject to the reduced rate of 10% as they are goods of vegetable origin, whereas artificial flowers are subject to the standard rate of 21%.

The question raised

Applicable tax rate for the supply of flowers and wreaths.

The DGT's ruling

The supplies of flowers, live plants, and wreaths carried out by funeral companies are taxed at the reduced rate of 10% as they constitute a specific aspect of their activity and not an ancillary supply. This rate applies to natural flowers, including dried, freeze-dried, or lacquered flowers. Artificial flowers (made of plastic, fabric, or paper) are not considered flowers for these purposes and are taxed at the general rate of 21%.

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