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V1721-17 4 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Outsourced dining services in residential care subject to 10% VAT

An elderly care residence association queried whether dining services contracted from an external company could qualify for the reduced 4% VAT rate. The Directorate General for Taxes (DGT) ruled that these services are subject to the standard 10% rate.

The question raised

Applicable tax rate for dining services provided by the external company to the applicant. Possibility of applying the reduced tax rate of 4 percent.

The DGT's ruling

The subcontracted dining service for the provision of meals to residents is subject to 10% VAT, regardless of whether the users occupy subsidized places. The 4% rate is reserved exclusively for telecare services, home help, day/night centers, and residential care as defined in Law 39/2006, under specific conditions of price control or financing.

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