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V1101-18 27 April 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sectores diferenciados

IAE taxation requires two headings for parapharmacy and cosmetics, with differentiated sectors for VAT

A medical entity requested clarification on the appropriate IAE heading for parapharmacy activities and the correct VAT management. The DGT ruled that the entity must pay tax under multiple headings depending on the products sold and must apply differentiated sectors for VAT when conducting both exempt and taxable activities.

The question raised

Corresponding heading in the Tax on Economic Activities for parapharmaceutical activity.

The DGT's ruling

In the IAE, if parapharmaceutical products including cosmetics and hygiene items are sold, taxation must occur under headings 652.3 and 652.4. Regarding VAT, the sale of parapharmaceutical products is subject to the general rate of 21%. When providing healthcare services (exempt) and parapharmaceutical sales (taxable) simultaneously, two distinct sectors of activity are created because they belong to different CNAE groups and their deduction percentages differ by more than 50 points.

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