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V1790-14 9 July 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · coadyuvantes tecnológicos

10% VAT rate applies to food enzymes used as processing aids

A manufacturer of enzymes for food production has requested clarification on the applicable VAT rate for their supplies. The Directorate-General for Taxes (DGT) has ruled that the reduced rate of 10% applies if these enzymes are commonly used as processing aids in the manufacture of food products.

The question raised

Applicable tax rate for the supplies of said goods.

The DGT's ruling

Food enzymes are taxed at 10% VAT provided they are capable of being used habitually and appropriately as technological aids in the production of food products. To this end, they must comply with the provisions of Article 91.1.1º of Law 37/1992. The classification depends on whether the substance is consumed as an ingredient or if it only leaves unavoidable residues without a technological effect on the finished product.

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