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V4113-15 21 December 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

Reduced 10% VAT rate applies to 70% and 96% alcohol and hydrogen peroxide subject to specific requirements

A company has requested clarification on the VAT rate applicable to its 70% and 96% alcohol and hydrogen peroxide. The DGT has determined that, as these products are classified under heading 30049000 of the Combined Nomenclature, they may be subject to the 10% reduced rate provided they meet the requirements for direct use by the final consumer and are not exempt medicines.

The question raised

Applicable tax rate.

The DGT's ruling

To apply the 10% rate to pharmaceutical products in category 30 of the Combined Nomenclature, four requirements must be met: they must belong to said category, they must not be medicines, they must not be tax-exempt, and they must be susceptible to direct use by the final consumer. Direct use is determined by the objective characteristics of the product at the time of delivery, regardless of who acquires it. Based on the provided tariff classification, 70%, 96% alcohol and hydrogen peroxide are taxed at 10% if they meet these requirements.

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