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V2153-17 21 August 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia sanitaria

Rehabilitation and therapy services may be VAT exempt or subject to 10% or 21% rates depending on nature and provider

A query was raised regarding the VAT treatment of rehabilitation, occupational therapy, and physiotherapy services provided by an individual authorised for social assistance to a day centre. The DGT has determined that exemption or reduced rates depend on whether the services constitute healthcare or social assistance.

The question raised

Taxation of the transaction in Value Added Tax and the applicable tax rate.

The DGT's ruling

Medical, surgical, or healthcare assistance services for diagnosis, prevention, or treatment are exempt from VAT if provided by medical or healthcare professionals. If they are not healthcare services but are considered part of a social assistance program provided by a social establishment, the reduced rate of 10% applies. In the event that neither of these requirements is met, the general rate of 21% shall apply.

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