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A medical services entity inquired whether alopecia treatment is exempt from VAT. The DGT responds that the exemption applies only if the services consist of the diagnosis, prevention, or treatment of the disease, performed by medical or healthcare professionals.
Question posed: Application of the exemption under Article 20.one.3º of Law 37/1992 on Value Added Tax.
Medical, surgical, or healthcare assistance services for the diagnosis, prevention, and treatment of alopecia are exempt, provided they are rendered by medical or healthcare professionals. Services for purely aesthetic purposes, such as alopecia treatments or hair implants performed outside of a medical procedure to treat a disease, are not exempt. The exemption remains applicable even if the services are invoiced through a commercial company.
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