Back to index
V2062-20 23 June 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo del cero por ciento

0% VAT rate on medical supplies requires goods to be listed in the Annex and recipient to be a public entity, hospital, or social body

A company has requested clarification on whether the 0% VAT rate introduced for COVID-19 can apply to the supply of suction cannulas. The Directorate-General for Taxes (DGT) has ruled that eligibility depends on meeting both objective requirements (the product must be included in the Annex of Royal Decree-Law 15/2020) and subjective requirements (the recipient must be a public law entity, a clinic/hospital, or a social entity).

The question raised

Whether the zero rate of Value Added Tax provided for in Article 8 of Royal Decree-Law 15/2020 would be applicable to said supplies.

The DGT's ruling

To apply the 0% rate pursuant to Article 8 of Royal Decree-Law 15/2020, the goods must be included in its Annex, considering that if 'ex' appears before the CN code, both the code and the description must match. Regarding the subjective scope, the recipients must be public law entities, clinics or hospital centers (centers with inpatient regimes), or private entities of a social nature. The application of the zero rate does not limit the right to deduct the VAT incurred by the issuer.

Book your free first meeting