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V2541-15 3 September 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

21% VAT rate applies to ornamental greenery such as cut branches or stems, unless capable of growth and reproduction

A query was raised regarding the VAT rate applicable to the supply of branches, green leaves, and cut stems. The DGT ruled that these items are subject to the 21% rate as they are not considered living plants, unless the species is capable of continued growth and reproduction.

The question raised

Applicable tax rate for the supply of branches, green leaves, and cut stems

The DGT's ruling

Ornamental greenery (cut branches, leaves, and stems) is taxed at 21% as they are neither flowers nor living plants. However, if the species is capable of continuing its growth and reproduction process, the reduced rate of 10% shall apply. Natural flowers, including dried, freeze-dried, or lacquered ones, are taxed at 10%, but artificial flowers are taxed at 21%.

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