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V1613-19 27 June 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · terapia génica

Medicines derived from blood through pharmaceutical chemical processes are subject to 4% VAT

A company sought clarification on whether its new gene therapy product, manufactured from blood via genetic modification, was VAT exempt. The DGT ruled that the exemption for human body parts does not apply and that the reduced rate of 4% must be applied as it is a medicinal product for human use.

The question raised

Whether the exemption provided for in Article 20.One.4º of Law 37/1992 would be applicable to the delivery of said product or, where applicable, the applicable tax rate.

The DGT's ruling

The exemption for deliveries of blood or tissues does not apply to products that have undergone transformation beyond mere preservation. Products manufactured from blood or plasma through chemical pharmaceutical processes, such as the medicinal product under inquiry, are subject to the tax. As it is a medicinal product for human use, the reduced tax rate of 4% applies.

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