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V0432-22 3 March 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Neuromodulation suit subject to 21% VAT rate due to failure to meet exclusive use requirement

A company has requested clarification on whether a neuromodulation suit designed to treat neurological diseases and chronic pain qualifies for the reduced 10% VAT rate. The DGT has determined that the product is not included in the categories listed in the annex of the VAT Act and must therefore be taxed at the standard rate.

The question raised

Application of the reduced tax rate of Value Added Tax.

The DGT's ruling

To apply the reduced rate of 10% to medical equipment, such equipment must be designed for the personal and exclusive use of persons with physical, mental, intellectual, or sensory impairments. The exclusivity clause excludes products for mixed use that may be used by persons with other non-disabling pathologies. As it is not considered included in the categories of the eighth section of the Annex to Law 37/1992, the suit subject to this inquiry shall be taxed at the general rate of 21%.

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