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V2278-14 4 September 2014 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior Criterion in force
OTRO · alcohol etílico

Exemption or tax refund required for alcohol used in animal hygiene products

A company manufacturing animal hygiene products containing ethanol has requested clarification on whether its products are subject to the Alcohol and Derived Beverages Tax. The Directorate-General for Taxes (DGT) clarifies that, even if the final product is not for human consumption, the alcohol used is subject to the tax. To avoid payment, the company must apply for an exemption or a tax refund.

The question raised

Whether animal hygiene products that include ethanol in their formula or manufacturing process are subject to the Excise Duties and Alcoholic Beverages Law.

The DGT's ruling

To use ethyl alcohol in animal hygiene products without bearing the tax rate, the company must request an exemption or a tax refund. Exemption is possible through the use of alcohol that is totally or partially denatured with approved substances. If it were not possible to use denatured alcohol, a tax refund could be requested provided that the alcohol is not incorporated into the resulting product.

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