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V0781-23 3 April 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades profesionales

Physiotherapy deemed a professional activity; VAT exemption depends on service purpose

The consultant asks whether physiotherapy services constitute professional activities subject to IRPF withholding and their VAT treatment. The DGT states that these are professional earnings and VAT exemption depends on whether the services have a diagnostic, preventive or therapeutic purpose.

The question raised

Question raised 1. In relation to IRPF: whether the income obtained can be classified as professional and, consequently, is subject to withholding tax.

The DGT's ruling

The physiotherapy activity is classified as income from professional activity; therefore, IRPF withholding shall apply if the payer is a withholding agent. Regarding VAT, services are exempt if they have a therapeutic purpose of diagnosis, prevention, or treatment of diseases and are provided by healthcare professionals. If the services do not have such a healthcare purpose, the general rate of 21% shall apply.

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