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V1557-19 25 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · exención

Psychological clinical services exempt from VAT if for diagnosis, prevention or treatment

A psychologist asks about VAT exemption in joint therapy and service billing. The DGT responds that psychological services are exempt from VAT only if they are part of healthcare (diagnosis, prevention or treatment), not orientation or advice.

The question raised

In joint therapies with other professionals, questions are raised regarding their VAT taxation, specifically whether any exemption in said Tax applies, as well as regarding who must issue the invoice to the patient.

The DGT's ruling

Psychology services are exempt from VAT only when they consist of healthcare for the diagnosis, prevention, or treatment of diseases. This exemption applies even if the services are invoiced by a commercial company. If the services do not have that therapeutic purpose, such as guidance or counseling, they shall be subject to the general rate of 21%. Regarding Personal Income Tax (IRPF), intermediation activities are considered income from economic activity.

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