Manufacturing of new goldsmithing products will be taxed at 21% VAT

The tax classification of goldsmithing products has raised doubts regarding the application of reduced tax rates. Recently, the Directorate General of Taxes (DGT) has clarified the VAT treatment applicable when a commercial entity manufactures these types of pieces by providing all the materials necessary for their production.

What the DGT has resolved

The advisory body has determined that the manufacturing of goldsmithing pieces, in which the entrepreneur supplies all the materials, is classified as a supply of goods. After analyzing the nature of these pieces, the DGT concludes that they do not meet the requirements demanded to be considered works of art as stipulated in Article 136 of Law 37/1992.

By not reaching the status of a work of art, these operations cannot benefit from special regimes. Consequently, the general tax rate of 21% established in Article 90 of Law 37/1992 must be applied.

What this means for you

For commercial entities dedicated to the manufacturing of goldsmithing, this resolution establishes a clear tax burden. If your activity consists of creating new pieces using your own supplies, you must apply the general VAT rate in your invoicing.

• The provision of materials by the manufacturer is key to the classification of the operation.
• The absence of the "work of art" status prevents the use of tax rates other than the general one.
• The applicable rate for these supplies of goods is 21%.

What should be done

Companies in this sector should verify whether their products strictly comply with the definition of a work of art provided in current regulations. It is necessary to evaluate the nature of each piece and the manufacturing process to ensure that the tax rate applied is correct and to avoid possible contingencies with the Tax Administration. Each operational situation must be analyzed to determine its legal fit.