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V3177-18 13 December 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

10% VAT rate applies to polypropylene greenhouse sheets meeting specific requirements

A company has requested clarification on the VAT rate applicable to polypropylene sheets used for protecting greenhouse plants against insects. The Directorate-General for Taxes (DGT) has ruled that the reduced rate of 10% applies if the product is classified as plastic for greenhouse cultivation or if it meets specific characteristics for agricultural or livestock use.

The question raised

Tax rate applicable for the purposes of Value Added Tax to the aforementioned operations.

The DGT's ruling

The reduced rate of 10% is applicable to polypropylene sheets if, due to their objective characteristics, packaging, presentation, and state of preservation, they are capable of being used directly, habitually, and appropriately in agricultural, forestry, or livestock activities. Likewise, this rate shall apply if the product can be considered plastic for mulch, tunnel, or greenhouse cultivation, regardless of the status of the purchaser. If these requirements are not met, the general rate of 21% shall apply.

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