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V3607-20 ·17 December 2020 ·consulta-vinculante Medium impact
Tax

Liquid nitrogen subject to 4% VAT if classified as a medicinal product, otherwise 21%

A taxpayer queried the applicable VAT rate for the supply of liquid nitrogen intended for various medical uses. The DGT ruled that the reduced rate of 4% applies only if the product is classified as a medicinal product; otherwise, the standard rate of 21% applies.

In 6 key points

How it affects those involved

This ruling clarifies the distinction between medicinal gases and industrial gases for VAT purposes, impacting suppliers and healthcare providers regarding tax compliance and pricing.

Lifecycle

2020-12-17PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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