Below, we will explain what this tax consists of , what its rate is and what products or services it affects.
What is reduced VAT?
Economipedia defines it like this:
Reduced Value taiwan mobile number example Added Tax (VAT) is a type of VAT with a lower tax rate than the General VAT.
It is, specifically, 10% on the good or service .
It is, therefore, like the general VAT , a tax:
Indirect , because it taxes the consumption of goods and services.
Proportional , because it is the same for all people regardless of their income.
The aim of the reduced VAT is to facilitate the consumption of products considered essential .
What products or services are subject to 10% VAT?
There is a list of products and services that are taxed with reduced VAT . These may vary but, in general, these are the main ones:
Books, magazines and newspapers.
Bread, milk, fruits, vegetables, legumes and cheeses.
Medicines for human use and prostheses.
Substances or products used regularly and appropriately for human or animal nutrition.
Animals, plants and other products intended for the production of products for human or animal nutrition, including breeding animals and those intended for fattening before being used for human or animal consumption.
