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V2677-14 8 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Standard 21% VAT rate applied to disinfectant detergent for dairy machinery cleaning

A company requested clarification on whether its bactericidal/fungicidal product, used for cleaning milking machines and dairy utensils, qualifies for the reduced 10% VAT rate. The Directorate General for Taxes (DGT) ruled that the standard 21% rate must apply, as the product does not meet the specific requirements for the reduced rate.

The question raised

Applicable tax rate.

The DGT's ruling

To apply the 10% rate to certain goods, they must be capable of being used directly, habitually, and appropriately in agricultural, forestry, or livestock activities due to their objective characteristics, packaging, presentation, and state of preservation. Furthermore, they must be expressly included in the list provided by the VAT Law (such as pesticides for phytosanitary or livestock use). The product in question, being a cleaning and disinfection detergent, does not meet these requirements.

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