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V2807-14 20 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
OTRO · labores del tabaco

Whole tobacco leaves may be subject to Tobacco Products Tax and VAT

The applicant asks whether the sale of whole tobacco leaves in a herbalist shop is subject to Tobacco Products Tax. The DGT rules that if the leaves are capable of being smoked without industrial processing, they constitute a tobacco product subject to the tax, and their sale is restricted to tobacco shops.

The question raised

Liability for the Special Tax on Tobacco Products.

The DGT's ruling

Unprocessed tobacco leaves are not subject to the tax, but cut or fractionated tobacco capable of being smoked without further industrial transformation is. If the leaves do not have cuts but are capable of being smoked, they are considered a tobacco product. The activity of transforming a non-taxable product into a taxable one constitutes manufacturing and must be carried out in a factory. Furthermore, the sale of tobacco products may only be carried out in tobacco and stamp shops or through authorized vending machines.

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