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V4470-16 18 October 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Fertilisers for manufacturing corrective agents subject to reduced 10% VAT rate

A fertiliser manufacturing company has requested clarification on the VAT rate applicable to the purchase of fertilisers for production and the procedure for rectifying invoices issued with the incorrect rate. The DGT has determined that the applicable rate is 10% and outlines the procedure for invoice rectification and tax deductions.

The question raised

Applicable tax rate and the method for obtaining the rectification of received invoices in the event that the wrong rate has been applied, as well as the amount that may be deducted by the consultant.

The DGT's ruling

The acquisition of fertilizers for the manufacture of fertilizers and soil conditioners is taxed at the reduced rate of 10% as they are goods susceptible to agricultural use. The rectification of invoices with an incorrect rate must be carried out by means of a corrective invoice identifying the original invoice. The right to deduction only proceeds for the amount expressly stated in the valid supporting documents. If the rectification reduces the deducted amount, a corrective tax return must be filed with surcharges and interest.

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