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V0090-22 20 January 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · atención residencial

Residential care services with an associated economic benefit may be taxed at 4% through invoice rectification

The inquirer asks how to recover VAT paid at 10% when 4% should have been applied to residential care services linked to an economic benefit. The DGT indicates that the provider must rectify the tax amounts and refund the excess via a credit note once the requirements are proven.

The question raised

Question posed - The date from which the 4 percent tax rate applies to residential care services covered by an economic benefit linked to the service that covers more than 10 percent of the price.

The DGT's ruling

Residential care services carried out as a consequence of an economic benefit that covers more than 10% of their price are taxed at the 4% rate. The accrual of these continuous supply operations occurs upon the exigibility of the consideration. The service provider must rectify the output VAT derived from the amounts paid, following proof of the requirements, by issuing a credit note and subsequently refunding the client.

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