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V2027-23 12 July 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Genetic analysis services may be VAT exempt if intended for disease diagnosis, prevention or treatment

A laboratory company enquired whether its services for conducting genetic tests and clinical data analysis were exempt from VAT. The DGT ruled that exemption depends on the primary purpose being the diagnosis, prevention or treatment of diseases, and that the services must be provided by medical or healthcare professionals.

The question raised

Whether the service provided by the consulting entity would be exempt from Value Added Tax.

The DGT's ruling

For DNA analysis and report preparation services to be exempt, they must be intended for the diagnosis, prevention, or treatment of diseases. Furthermore, they must be materially provided by recognized medical or healthcare professionals. If the primary purpose is not the protection of health, but rather to facilitate an opinion so that a third party may make a decision with legal effects, the service shall be subject to VAT at the general rate.

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