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V1615-20 26 May 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia social

Research services for a university subject to 21% VAT and do not qualify for exemption

A non-profit cooperative sought clarification on whether research into social media risks among young people could qualify for social assistance exemption or a reduced VAT rate. The DGT has ruled that, as it is a research service provided to a university, it must be taxed at the standard rate of 21%.

The question raised

Question raised: Possibility of applying to said work the exemption or the reduced tax rate of 10 percent in Value Added Tax.

The DGT's ruling

The research service provided to a university does not constitute a social assistance service, even if its results indirectly affect vulnerable groups. As it is not social assistance, the exemption under Article 20.one.8º nor the reduced rate of 10% shall apply. Therefore, the operation is subject to the general tax rate of 21% pursuant to Article 90.one of the VAT Law.

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