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V1905-23 3 July 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Taxation of rice and pasta products based on whether they are natural or derived products

A query was made regarding the VAT rates applicable to various rice products (medium grain, cylinders, husk, paddy rice) and pasta products (noodles, lasagna, cannelloni, empanadillas). The DGT determines the rates based on whether they are natural products, derived products, or pasta products under current temporary regulations.

The question raised

For the purposes of Value Added Tax, the applicable tax rate for the following products:

The DGT's ruling

Broken rice and paddy rice are natural products with a rate of 4% (or 0% depending on temporary reduction). Rice cylinders and rice husks are derived products with a rate of 10%. Noodles, lasagna, cannelloni, and empanadas are taxed at 5% (or 10% depending on temporary reduction) if they meet the definition of pasta. Otherwise, they are taxed at 10%.

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