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V3251-16 12 July 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

The 4% VAT rate applies to curd only if it meets the legal definition of cheese

A company has requested clarification on the VAT rate applicable to curd used in cheese production. The DGT has ruled that if the product meets the definition of cheese under Royal Decree 1113/2006, it is taxed at 4%, whereas if it is defined and named as curd, the 10% rate applies.

The question raised

Applicable tax rate.

The DGT's ruling

Curd shall be taxed at 4% if, in accordance with food legislation, it corresponds to the definition of cheese under Royal Decree 1113/2006 and is designated as such. Otherwise, if the product is the curd defined by Royal Decree 1070/2007, the applicable rate shall be 10%. Curd cannot be considered one of the types of milk taxed at 4% pursuant to Article 91.2.1.1º c) of the VAT Law.

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