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V1069-22 12 May 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

A 4% rate applies to buckwheat flour if it can be used to make bread

A company inquires which VAT rate should be applied to the marketing of buckwheat flour. The DGT responds that the rate shall be 4% if the product can be used to make any type of bread, and 10% in all other cases.

The question raised

Question posed: Applicable tax rate for Value Added Tax purposes.

The DGT's ruling

Transactions involving buckwheat flour are taxed at the reduced rate of 4% provided that, objectively considered, it can be used in the production of any type of bread, regardless of the purchaser's intended use. If this condition of bread-making suitability is not met, the 10% rate shall apply.

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