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V0789-18 21 March 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

Tree removal services taxed at 21% unless deemed necessary for agricultural exploitation

A query was raised regarding whether tree removal services provided to agricultural holdings qualify for the reduced VAT rate. The DGT indicates that, as a general rule, the 21% rate applies, but the 10% rate may be used if the service is considered necessary for the development of the agricultural exploitation.

The question raised

Applicable tax rate for the operation for Value Added Tax purposes.

The DGT's ruling

The tree uprooting service is taxed at 21% if considered in isolation. However, if provided to entrepreneurs holding agricultural holdings and the service is intended for the development of said holdings and can be included in the necessary services listed in the law, the reduced rate of 10% shall apply.

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