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V0821-16 2 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

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

A funeral services company has requested clarification on the VAT rate applicable to flowers and wreaths delivered as part of its services. The DGT has determined that natural flowers are subject to the 10% reduced rate, whereas artificial flowers are subject to the standard 21% rate.

The question raised

Applicable tax rate for the supply of flowers and wreaths carried out by the taxpayer within the framework of its funeral services.

The DGT's ruling

The supply of flowers and live ornamental plants carried out by funeral companies is subject to the reduced rate of 10%. These supplies are considered an independent operation and not ancillary to the main funeral service. However, 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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