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V0981-18 17 April 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Transport of oil for human consumption taxed at the reduced rate of 10%

A company requested clarification on whether transport costs for oil intended for human consumption should be taxed at the same rate as the product itself. The Directorate General for Taxes (DGT) ruled that transport is an ancillary expense that forms part of the taxable base and must therefore be subject to the 10% rate.

The question raised

Applicable tax rate to transport expenses and whether the rate corresponding to the sale of oil is applicable.

The DGT's ruling

The supplies of oil suitable for human consumption are taxed at the 10% tax rate. The taxable base for these supplies includes the total amount of the consideration, which comprises ancillary expenses such as packaging, wrapping, commissions, postage, and transport. Therefore, the 10% rate is applied to the sum of the price of the oil and the transport expenses.

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