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V1415-25 24 July 2025 · SG de Impuestos sobre el Consumo Criterion in force
IVA · cesión de personal

Assignment of staff to a local council for nurseries is subject to general 21% VAT

A home care company asks whether assigning staff to cover vacancies in public nurseries is subject to VAT and, if so, which rate applies. The DGT determines that the operation constitutes a service supply subject to VAT at the general rate.

The question raised

Issue raised: Liability for, and where applicable, exemption from Value Added Tax regarding the aforementioned secondments of personnel. Where applicable, the applicable tax rate.

The DGT's ruling

The secondment of personnel carried out by the commercial entity is considered a supply of services subject to and not exempt from VAT. Although the city council provides social assistance services, the secondment of personnel itself is not considered a social assistance service. Therefore, the general tax rate of 21% applies instead of the reduced rate of 10%.

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