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V0220-21 10 February 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo del cero por ciento

Public foundations may apply the 0% rate on the acquisition of medical supplies for COVID-19

A regional public foundation has requested clarification on whether it can apply the 0% VAT rate when purchasing medical supplies. The Directorate-General for Taxes (DGT) has ruled that, as a public law entity, it is entitled to benefit from this tax rate for goods specified under the relevant regulations.

The question raised

Tax rate applicable for Value Added Tax purposes under Article 8 of Royal Decree-law 15/2020, of 21 April, on urgent complementary measures to support the economy and employment.

The DGT's ruling

Public Law entities, including public foundations, are included within the subjective scope for applying the 0% rate on the supplies, imports, and acquisitions of goods necessary to combat COVID-19. For this to apply, the goods must be included in the annexes of the applicable Royal Decree-laws and comply with the description in the Combined Nomenclature. These operations must be documented in an invoice as exempt, without limiting the right to deduct input VAT.

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