Technical and Legal Grounds: Applying the Reduced VAT Rate

This document aims to outline the criteria used to determine the Value Added Tax (VAT) rate applied to our products. These guidelines are based strictly on current legislation and officially recognized technical interpretations.

In accordance with Law 37/1992 (VAT Law), Article 91, Section 1, Point 8, the reduced VAT rate is applicable to:

“Flowers, live ornamental plants, as well as seeds, bulbs, cuttings, and other products of strictly plant origin that can be used for their cultivation.”

2. Product Interpretation and Categorisation

Drawing on technical and legal assessments, the tax is applied as follows:

A. Natural Flowers

The reduced rate applies to flowers in any condition, provided they retain their natural origin.

  • Includes: Fresh, dyed, preserved, and dried flowers.
  • Excludes: Artificial flowers (which are subject to the standard VAT rate).

B. Live Ornamental Plants

This applies to plants primarily used for decorative purposes. Please note that other types of plants (such as culinary or horticultural ones) also qualify for the reduced rate under different sections of the same law.

  • Includes: Live ornamental plants, mosses, lichens, and algae.
  • Excludes: Dried, preserved, and artificial plants.

C. Bulbs and Seeds

These fall under the same guidelines as natural flowers and benefit from the reduced rate to promote agricultural production and cultivation.

D. Cuttings and Other Plant-Based Products

This category encompasses products of strictly plant origin that can be used to grow new plants.

  • Includes: Fresh fruits, rhizomes, roots, branches, and leaves (owing to their vegetative potential).
  • Excludes: These same items if they are dyed, preserved, or dried, as they no longer possess their reproductive or growth properties.

3. Commitment to Transparency

We currently apply this tax framework across all our business operations. If you require further clarification or notice any discrepancies, please feel free to reach out to us at clientes@verdnatura.es.

Disclaimer: This document is for informational purposes only and is based on the current interpretation of tax laws.