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V2081-20 23 June 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

0% VAT rate applies to the supply of medical equipment to public law entities, clinics, or hospitals

A regional parliament queried whether the purchase of protective equipment for its staff could qualify for the 0% VAT rate. The Directorate-General for Taxes (DGT) ruled that territorial administrations and their dependent entities are public law entities and may therefore be recipients of this tax rate.

The question raised

Tax rate applicable for Value Added Tax purposes under Article 8 of Royal Decree-Law 15/2020, of 21 April, on urgent complementary measures to support the economy and employment.

The DGT's ruling

The 0% VAT rate applies to the supply of goods listed in the Annex to Royal Decree-Law 15/2020 where the recipients are public law entities, clinics or hospital centers, or private social entities. The term public law entities includes territorial Public Administrations and any other entity integrated into or dependent on them. Regarding the concept of clinic or hospital center, it is understood to encompass healthcare centers intended to provide assistance under at least an inpatient regime. The application of the 0% rate does not limit the right to deduct input VAT by the taxable person.

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