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V2135-18 18 July 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Reduced 10% VAT rate applies to fertilisers suitable for agricultural, forestry or livestock use

A company requested clarification on the VAT rate applicable to its organic hemp fertilisers in various formats. The DGT ruled that a 10% rate applies if they meet the requirements for suitability in agricultural, forestry or livestock activities; otherwise, the standard 21% rate applies.

The question raised

Tax rate applicable for Value Added Tax purposes.

The DGT's ruling

The reduced rate of 10% applies to fertilizers which, due to their objective characteristics, packaging, presentation, and state of preservation, are suitable for direct, habitual, and appropriate use in agricultural, forestry, or livestock activities. If the product is suitable for mixed use (agricultural or domestic) or solely for gardening without a business purpose, the general rate of 21% shall apply.

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