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V0223-22 9 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo cero

Zero VAT rate on medical supplies depends on product Annex listing and recipient being a hospital or public entity

A hospital consortium has requested clarification on whether the purchase of ultrasound machines qualifies for the 0% VAT rate under COVID-19 measures. The Directorate General for Taxes (DGT) explains that applying this rate requires meeting both objective requirements (the item must be listed in the Annex with its specific description) and subjective requirements (the recipient must be a public law entity, a clinic, or a hospital with inpatient facilities).

The question raised

Whether the zero rate of Value Added Tax provided for in Article 8 of Royal Decree-Law 15/2020 and in the first additional provision of Royal Decree-Law 7/2021 would be applicable to said acquisitions.

The DGT's ruling

To apply the 0% rate to goods necessary to combat COVID-19, the product must simultaneously satisfy two requirements: it must be classified under a CN code in the Annex and match the description of the good in said Annex. Regarding the recipient, they must be a public law entity, a clinic or a hospital center (understood as a center with an inpatient regime that conducts research or teaching), or a private entity of a social nature. In the case of products for in vitro diagnosis of SARS-CoV-2, the zero rate applies regardless of the recipient's status, provided that the operation is carried out by an entrepreneur or professional.

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