- The Spanish Directorate General of Taxes (DGT) has clarified that specialty breads are eligible for a super-reduced VAT rate of 4%, following a Supreme Court ruling that aligns these products with standard bread for tax purposes.
- The ruling emphasizes that not applying the 4% rate to certain specialty breads violates VAT neutrality and free competition, as the differences from standard bread are often imperceptible to consumers.
- Eligible products for the 4% VAT rate include various specialty breads, such as multigrain and gluten-free options, as well as related products like flour and dough used for their preparation.
Source Marosa
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