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V2070-20 23 June 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo del cero por ciento

Application of 0% VAT rate on the supply of medical equipment to public law entities

A local council has enquired whether the purchase of masks to combat COVID-19 is eligible for the 0% VAT rate. The Directorate-General for Taxes (DGT) has ruled that this rate applies to goods listed in the Annex of Royal Decree-Law 15/2020 when the recipient is a public law entity, clinic, hospital, or social entity.

The question raised

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

The DGT's ruling

The 0% VAT rate applies to the supplies, imports, and intra-Community acquisitions of the goods listed in the Annex to Royal Decree-Law 15/2020. For this to apply, the recipient must be a public law entity, clinic, hospital center, or private entity of a social nature. The term public law entities includes territorial Public Administrations, such as city councils. These operations shall be documented in an invoice as exempt, without this limiting the taxable person's right to deduction.

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