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V2809-14 20 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Flour preparations containing various ingredients taxed at 10% VAT

A company has requested clarification on the VAT rate applicable to various flour preparations (bread, pizza, and muffin mixes, etc.) containing flour, corn starch, and other ingredients. The Directorate-General for Taxes (DGT) has ruled that these products do not qualify as bread-making flours and must be taxed at the reduced rate of 10%.

The question raised

Applicable tax rate to the aforementioned products.

The DGT's ruling

Flour preparations containing different proportions of flour, corn starch, and other ingredients (such as bread, pizza, or pastry mixes) are taxed at the 10% rate. They are not considered bread-making flours subject to the 4% rate, as the latter are the product of wheat milling that can be used to make any type of bread.

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