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V1976-20 17 June 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Application of 0% VAT rate on laboratory equipment based on recipient and product description

A manufacturer of biological safety cabinets has consulted whether it can apply a 0% VAT rate on sales to public entities and healthcare centres. The DGT clarifies that the zero rate depends on the product being listed in the Annex to Royal Decree-Law 15/2020 and the recipient being a public law entity, clinic, or hospital centre.

The question raised

Tax rate applicable for Value Added Tax purposes, and, specifically, whether the 0 percent tax rate provided for in Article 8 of Royal Decree-Law 15/2020, of April 21, on urgent complementary measures to support the economy and employment, would be applicable when such booths are supplied to Public Law Entities, clinics, and hospital centers.

The DGT's ruling

To apply the 0% rate, the good must be included in the Annex of Royal Decree-Law 15/2020, as determined by its CN code and description. The recipient must be a Public Law entity, a clinic or hospital center, or a private entity of a social nature. The term clinic or hospital center encompasses healthcare centers intended to provide assistance under at least an inpatient regime. The application of the zero rate does not limit the right to deduct the VAT incurred by the taxable person.

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