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Natural Products: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 49 rulings · 2014–2024

Current position

Natural products, which include fruits, vegetables, garden produce, legumes, tubers, and cereals, are taxed at the reduced rate or at 0% according to current regulations. Natural products are considered those obtained directly from their crops or subjected to simple manipulation or preservation operations, such as drying, dehydration, or chopping, without losing their original characteristics. The classification must comply with the provisions of the Food Code.

The DGT's position remains constant in the definition of natural products, focused on direct obtaining from the crop and the performance of manipulation or preservation operations that do not alter their essence. The evolution reflects the adaptation of this criterion to changes in tax rates, moving from 4% to 0% following the entry into force of Royal Decree-Law 20/2022. No changes are observed in the nature of the concept, but rather an application of the same to new tax rates.

Turning points

  1. V0900-16

    Clarifies that the status of a natural product is maintained even if the good is subject to simple manipulation or preservation operations.

  2. V0731-22

    Specifies that drying or dehydration operations do not prevent the classification as a natural product.

  3. V0690-23

    Links the application of the 0% rate to the status of a natural product and extends the permitted operations to include chopping.

Analysis based on 48 of 49 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V2547-23 25 Sept 2023

Olive deliveries by farmers subject to 0% VAT during 2023

SG de Impuestos sobre el Consumo
tipo impositivoproductos naturalesfrutas oleaginosasdevengomanipulación LIVA — Ley 37/1992 del IVA art. 90.DosLIVA — Ley 37/1992 del IVA art. 91.Uno.1
Affects CompanyExpat · Non-residentIndividual
V0111-23 1 Feb 2023

Zero-rated VAT supplies on basic goods allow for the deduction of input tax

SG de Impuestos sobre el Consumo
tipo impositivo del cero por cientoderecho a la deducciónoperaciones sujetas y no exentasregla de la prorrataproductos naturales LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 5.Uno
Affects CompanyExpat · Non-residentIndividual
V0731-22 4 Apr 2022

Reduced 4% VAT rate applied to tomato, carrot and carob powder

SG de Impuestos sobre el Consumo
tipo reducidoproductos naturalesdeshidratacióntransformaciónlegumbres LIVA — Ley 37/1992 del IVA art. 91.dos.1.1º.fLGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual
V0387-22 28 Feb 2022

Seed potatoes taxed at 4% if classified as tubers or 10% otherwise

SG de Impuestos sobre el Consumo
tipo impositivopatata de siembratubérculossemillasproductos naturales LIVA — Ley 37/1992 del IVA art. 91.uno.1.1ºLIVA — Ley 37/1992 del IVA art. 91.uno.1.2º
Affects CompanyExpat · Non-residentIndividual

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