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V1815-22 1 August 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia social

Application of the 10% reduced VAT rate to the management of a leisure centre for people with disabilities

A consortium of municipalities has requested clarification on the VAT rate applicable to the management of a leisure centre for people with disabilities. The Directorate-General for Taxes (DGT) has ruled that if the contractor is not a social entity, the 10% reduced rate applies.

The question raised

Applicable tax rate in Value Added Tax for the described service.

The DGT's ruling

Services providing assistance to persons with disabilities may be exempt from VAT if they are provided by entities under Public Law or private establishments of a social nature. If the successful bidder does not meet the requirements to be an entity of a social nature, the provision of social assistance services shall not be exempt and the reduced rate of 10% shall apply. In the event that the requirements for social assistance are not met, the general rate of 21% shall apply.

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