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An entity requested clarification on the VAT rate applicable to desiccated coconut and almond flour subjected to certain processes. The DGT has determined that these products are subject to a 4% rate as they are considered natural products.
Question posed: Applicable tax rate.
Natural products are those obtained directly from their crops without transformation techniques, or which have undergone simple handling or preservation operations (such as drying or shelling) that maintain their original characteristics. Shredded coconut and almond flour are considered natural products and, therefore, are subject to the 4% tax rate.
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