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V0790-18 21 March 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

4% VAT rate applied to the supply of dried peppers

A query was made regarding the applicable VAT rate for the supply of dried peppers used in the production of paprika. The DGT has determined that this product is subject to a 4% rate as it is a natural product.

The question raised

Applicable tax rate.

The DGT's ruling

Dried pepper is taxed at the reduced rate of 4% as it is a natural product. Natural products are understood to be those obtained directly from their crops without transformation techniques, allowing simple manipulation or preservation operations such as drying. Paprika, being a product of milling, is distinct from the dried pepper subject to this inquiry.

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