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V0426-15 3 February 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Physiotherapy services using electrostimulation are only VAT exempt if for therapeutic purposes

An entity has enquired whether its physiotherapy services using muscle electrostimulation are exempt from VAT as healthcare activities. The DGT has ruled that the exemption only applies if the services are intended for the diagnosis, prevention, or treatment of diseases.

The question raised

Application of the exemption under Article 20.one.3º of the Value Added Tax Law as they concern healthcare activities.

The DGT's ruling

For healthcare services to be exempt from VAT, two requirements must be met: the services must be for the diagnosis, prevention, or treatment of diseases, and they must be provided by medical or healthcare professionals. If the purpose of the provision is not the protection of health (as in aesthetic, relaxing, or sporting cases), the service shall be subject to the general rate of 21%.

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