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V0793-14 24 March 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Dehydrated onion powder subject to reduced 4% VAT rate

A query was raised regarding whether the importation of dehydrated onion powder should be subject to the 4% or 10% VAT rate. The DGT has determined that, as the product retains its natural status following the dehydration process, it qualifies for the reduced rate.

The question raised

Applicable tax rate.

The DGT's ruling

Natural products are those obtained directly from their crops without transformation techniques, although they may undergo simple manipulation or preservation operations such as dehydration. Vegetables and garden produce, which may be presented fresh, dried, dehydrated, or frozen, are taxed at 4%. Therefore, dehydrated onion powder is considered a natural product for VAT purposes.

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