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V0966-25 5 June 2025 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

10% reduced VAT applies if product is agricultural and qualifies as fertilizer or pesticide

The consultant asks what VAT rate applies to a product that forms a film on plants to enhance fertilizer effectiveness. The DGT responds that a 10% reduced rate applies only if the product is classified as fertilizer, organic residue, corrective agent, amendment, herbicide or pesticide and is suitable for agricultural, forestry or livestock use.

The question raised

Tax rate applicable for Value Added Tax purposes to the supply of said product.

The DGT's ruling

The reduced rate of 10% requires that the good be capable of being used directly, habitually, and appropriately in agricultural, forestry, or livestock activities due to its characteristics, packaging, and condition. Furthermore, the product must fall within the categories of fertilizers, organic waste, conditioners, amendments, herbicides, or pesticides. If the product has a mixed use with gardening or does not fit into said categories, the general rate of 21% shall apply.

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