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V0231-21 10 February 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo del cero por ciento

Professional associations may apply 0% VAT rate on COVID-19 medical supplies

The General Council of Stomatologists and Dentists queried whether they could apply the 0% VAT rate to the purchase of medical supplies. The Directorate-General for Taxes (DGT) ruled that professional associations, as public law entities, are eligible for this rate if the products are listed in the legal annexes; however, this does not extend to clinics or individual professionals.

The question raised

Scope of application of the 0 percent Value Added Tax rate referred to in Royal Decree-Law 15/2020, of April 21, on urgent complementary measures to support the economy and employment.

The DGT's ruling

Professional associations have the nature of entities under Public Law and may benefit from the 0% rate for goods listed in the Annexes of Royal Decree-Laws 15/2020 and 34/2020. The material must comply with both the description and the NC code indicated in the annexes. However, dental clinics or stomatologists cannot apply this rate as they do not meet the subjective requirement of being entities under Public Law.

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