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V2023-18 5 July 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · concesión de obra pública

Residential services in a hospital management concession are subject to the 21% standard VAT rate

A company sought clarification on whether the residential and non-healthcare services within a hospital management concession should be subject to the reduced VAT rate. The DGT has ruled that, as it constitutes a single integrated management operation, the standard rate applies.

The question raised

Applicable tax rate for non-healthcare residential services.

The DGT's ruling

The concession contract for the construction, maintenance, and operation of a hospital constitutes a single complex operation. Residential and complementary services are not independent, but rather form an indivisible economic provision with the management of the center. Therefore, the reduced hospitality rate cannot be applied, but rather the general rate of 21% established in Article 90.1 of Law 37/1992.

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