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V1050-20 24 April 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mutua colaboradora

Operations of Mutual Societies collaborating with Social Security are subject to VAT but exempt if certain requirements are met

A Mutual Society collaborating with Social Security has requested clarification on whether its operations are not subject to VAT or are exempt. The DGT has determined that these mutual societies act as entrepreneurs and their operations are subject to the tax, although they may be exempt under Article 20.One.7º.

The question raised

Taxation for Value Added Tax purposes of the operations of the assets allocated to the management of the activity of the Social Security itself and, specifically, whether the non-subjectivity case provided for in Article 7.8 of Law 37/1992, or the exemption provided for in Article 20.One.7, is applicable to these operations.

The DGT's ruling

Mutual societies collaborating with the Social Security hold the status of entrepreneurs and their operations are subject to VAT. The non-subjectivity provided for in Article 7.8 does not apply because they are not Public Administrations, even though they form part of the public sector. Operations for the fulfillment of their specific purposes are exempt pursuant to Article 20.One.7, provided that they do not receive consideration other than contributions. These exempt operations must be included in the volume of operations and in the denominator of the pro rata calculation.

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