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V0784-16 26 February 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

VAT on natural flower and live plant deliveries by funeral companies is 10%

A funeral company has requested clarification on whether the delivery of flowers, wreaths, and plants is ancillary to funeral services and which VAT rate applies. The DGT has ruled that these deliveries are not ancillary, but rather independent transactions that are subject to the reduced VAT rate of 10% if the items are natural.

The question raised

Whether the deliveries subject to this consultation should be considered ancillary to the funeral services provided, and the tax rate applicable to them.

The DGT's ruling

The deliveries of flowers, wreaths, bouquets, and live plants carried out by funeral companies are not ancillary to the main service, but rather constitute an end in themselves for the customer. Therefore, they are taxed independently at the reduced rate of 10% provided for flowers and ornamental plants. This rate does not apply to artificial or 'handheld' flowers, which are taxed at the general rate of 21%.

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