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V1666-14 30 June 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia social

Postural hygiene teaching services for the elderly taxed at 10% VAT, unless classified as social assistance

A query was raised regarding whether postural hygiene teaching for elderly people in a day centre is VAT-exempt or subject to a specific rate. The DGT ruled that, as the service is provided by a natural person, the social assistance exemption does not apply; instead, the reduced rate of 10% or the standard rate of 21% must be applied depending on the circumstances.

The question raised

Exemption of the services provided or, where applicable, the applicable tax rate.

The DGT's ruling

The exemption for elderly care is not applicable when the service is provided by a natural person, as they do not hold the status of a private social establishment. Postural hygiene teaching services are subject to VAT, applying the reduced rate of 10% if they fall within the scope of Article 91.1.2.7 of Law 37/1992. The general rate of 21% shall apply to those services that are not considered included in a social assistance program.

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