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A taxpayer queried the applicable VAT rate for a human antiseptic used to prevent skin diseases. The DGT ruled that a 10% reduced rate applies, provided the product is classified under Chapter 30 of the Combined Nomenclature and meets other specific requirements.
Question raised: Applicable tax rate.
To apply the reduced rate of 10% to pharmaceutical products of Chapter 30 of the Combined Nomenclature, four requirements must be met: they must be included in said category, they must not be medicines, they must not be tax-exempt, and they must be suitable for direct use by the final consumer. If these requirements are not met, the general rate of 21% shall apply.
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