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V0005-21 4 January 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo cero

0% VAT rate on medical products requires both CN code and Annex description to be met

A medical device company has requested clarification on which surgical products qualify for the 0% VAT rate. The DGT has clarified that to apply this rate, both the Combined Nomenclature code and the specific description set out in the Annex of the relevant Royal Decree-Law must be met cumulatively.

The question raised

Clarification of the binding ruling of August 13, 2020, inquiry V2640-20, regarding the Value Added Tax rate applicable to these products.

The DGT's ruling

To apply the 0% rate to medical goods, it is necessary for the product to simultaneously satisfy two requirements: to be classified under the Combined Nomenclature codes indicated in the Annex and to comply with the product description established in said Annex. If both requirements are not met, the 0% rate is not applicable. Products that do not fit within this measure will generally be taxed at the standard rate of 21%.

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