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V1454-20 18 May 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · atención residencial

Application of the 4% rate to residential care services via corrective invoice

The taxpayer asks how to recover VAT paid at 10% when the 4% rate should have applied to residential services following the receipt of a linked financial benefit. The DGT indicates that the provider must rectify the tax amounts using a corrective invoice, provided the requirements were met at the time of accrual.

The question raised

Date from which the 4 percent tax rate applies to residential care services covered by an economic benefit linked to the service that covers more than 10 percent of the price.

The DGT's ruling

Residential care services that receive a linked economic benefit covering more than 10% of their price are taxed at 4%. If a higher rate was applied, the provider must rectify the excess tax amounts charged through the issuance of a corrective invoice. To do so, the beneficiary must prove that the requirements were met on the date the tax was accrued. The taxable person may regularize the situation in the corresponding tax return or in subsequent returns up to one year after the rectification.

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