Breadcrumbs, but also frozen pre-baked bread and frozen bread dough are not covered by the VAT exemption that came into effect on Wednesday, according to the Tax Authorities (AT).
The details of the types of food not eligible for 0% VAT are contained in a circular now released by the AT, which recalls that this temporary measure gives the right to deduct the amount, under the same conditions as operators would benefit from the reduced rates.
Bread is one of 46 products that are part of the 0% VAT basket, but the tax authorities clarified that the measure does not cover breadcrumbs, bread-related products or fine bakery products or even intermediate products or products in the production process, namely, “frozen pre-baked bread”, “frozen bread dough” or “other semi-prepared doughs”.
In the case of rice, the “smoked” and “flavored” versions are excluded, while in the case of vegetables, the exemption applies to both the whole and the “cut or broken” state, with sliced fruit also allowed.
In the category of dairy products, “concentrated, evaporated, condensed, block or granulated milk is excluded from the application of the exemption”, as well as “cream, chocolate, flavored, vitaminized or fortified milk” and even “other types of milk, although the composition is cow’s milk may contain, as well as dairy drinks”.
As with meat, the 0% VAT on fish also covers “specified species only”, but excludes related species such as paloco or pollock.
For butter, the terms “semi-fat”, “skimmed” or “light” are accepted within the scope of the exemption, depending on the minimum and maximum limit of milk fat, but peanuts or cocoa butter are excluded.
Source: DN
