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V2406-23 7 September 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · harinas panificables

0% VAT applies to maize and barley flour if suitable for breadmaking, or 10% if not

A company has requested clarification on the VAT rate applicable to the sale of maize and barley flour intended for animal consumption. The Directorate-General for Taxes (DGT) has ruled that the rate depends on whether such flours can objectively be used in the production of bread.

The question raised

Applicable tax rate for Value Added Tax purposes regarding the transaction.

The DGT's ruling

If corn and barley flours are suitable for breadmaking according to the regulations, the 0% rate applies pursuant to Royal Decree-Law 20/2022. If they cannot objectively be used in the production of bread, they are taxed at the 10% rate in accordance with Law 37/1992. The 0% rate is temporary and is subject to the inflation conditions established in the regulation.

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