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V0900-16 10 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

4% VAT rate applies to olives classified as natural products

A taxpayer queried the VAT rate applicable to the supply of olives intended for oil production and table olives. The DGT ruled that as olives are oilseeds classified as natural products, they are subject to the 4% reduced rate.

The question raised

Applicable tax rate.

The DGT's ruling

Oilseed fruits, such as olives (including green ones), are taxed at the reduced rate of 4% if they qualify as natural products according to the Food Code. This status is maintained even if they have been subject to simple processing or preservation operations that do not alter their original characteristics. The 4% rate applies regardless of the destination intended by the acquirer.

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