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V2961-23 8 November 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

10% VAT rate applies to live ornamental plants, but aquariums taxed at 21% if not ancillary

A company selling aquariums and accessories has requested clarification on the VAT rate applicable when an aquarium is sold together with live ornamental plants for a single price. The DGT ruled that while live ornamental plants attract the reduced rate of 10%, if the aquarium is not considered an ancillary element, it must be taxed separately at the standard rate of 21%.

The question raised

Value Added Tax rate applicable to the supply of natural ornamental plants incorporated in an aquarium for sale.

The DGT's ruling

Live ornamental plants and certain plant-based products are subject to a 10% tax rate. However, if a single-price transaction also includes goods that are not ancillary to the plants, such as an aquarium which constitutes an end in itself, the taxable base for each must be determined in proportion to its market value. In such a case, the aquarium shall be taxed at the general rate of 21% and the plants at the reduced rate of 10%.

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