VAT rates for certain beverages

Question. Rate applicable to coconut water beverages with and without added sugar.

Answer. The general rate of 21% will be applicable when the following requirements are simultaneously met

1. That the product is included in article 2 of Royal Decree 650/2011, of May 9, which approves the technical-sanitary regulations on soft drinks and in Annex I.A of the Royal Decree 650/2011, of May 9, and in Annex I.A of Royal Decree 781/2013, of October 11.

2º. That in its elaboration sugars or other natural sweeteners have been added. In particular, those defined in the Technical-Sanitary Regulation on certain sugars for human consumption, approved by the Royal Decree 1052/2003, of August 1 and in section 3 of the Quality Standard for honey, approved by Royal Decree 1049/2003, of August 1. Or, that in its elaboration sweetening additives referred to in paragraph 2, of part B, of Annex II of Regulation (EC) No. 1333/2008 of the European Parliament and of the Council of 16 December 2008 on food additives.

The competence to determine whether a given product is considered as a soft drink or juice in the beverage or juice in the aforementioned terms, corresponds to the Ministry of Agriculture, Fishing and Food, which is entrusted with the interpretation of the Food Code and its development provisions.  For its part, the Ministry of Consumer Affairs, to which the Spanish Agency for Food Safety and Nutrition (Agencia Española de Seguridad Alimentaria y Nutrición Safety Agency (AESAN) is responsible for sweetening additives and the hygienic and sanitary control of the products.

Source: audiconsultores-etlglobal.com

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