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V0049-14 14 January 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo superreducido

4% VAT rate applies to home care services under administrative contracts with fixed pricing

The inquiry concerns the VAT rate applicable to home care services for individuals with dependency needs. The DGT has ruled that the 4% reduced rate applies if the services meet the definition set out in Law 39/2006 and are provided through agreed places or administrative contracts with prices pre-established by the Administration.

The question raised

Applicable tax rate for the aforementioned services.

The DGT's ruling

The 4% rate applies to telecare, home help, day/night centers, and residential care as defined in Law 39/2006. To this end, they must be provided through contracted places or through administrative contracts where the price is predetermined by the Administration. It also applies if the linked economic benefit covers more than 75% of the price. The 4% rate does not apply to services for the prevention or promotion of autonomy, nor to services under a private regime not contracted with the Administration where the price is freely agreed upon.

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