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V2085-20 23 June 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

0% VAT rate applies to COVID-19 combat goods if supplied to hospitals or public entities

A mutual company queried whether a 0% VAT rate could be applied to goods intended to combat COVID-19 when the recipients are its own hospitals and healthcare centres. The DGT ruled that application depends on the goods being listed in the annex to Royal Decree-Law 15/2020 and the recipients meeting the requirements of being a public entity, clinic, hospital, or social entity.

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% rate applies to the goods listed in the Annex to Royal Decree-Law 15/2020 when the recipients are public law entities, clinics, hospital centers, or private social entities. The term 'clinic or hospital center' encompasses healthcare centers intended to provide assistance in at least an inpatient regime. Public law entities include territorial administrations and any body or entity integrated into or dependent on them. The application of the zero rate does not limit the right to deduct the VAT incurred by the taxable person.

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