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V2191-22 20 October 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia sanitaria

Administrative management services are not exempt from VAT even if provided alongside healthcare

An insurance company inquires whether healthcare and administrative management services contracted with a new entity are exempt from VAT. The DGT determines that medical assistance is exempt, but administrative management is an independent service subject to the general rate.

The question raised

Question posed: Application of the Value Added Tax exemption to the services contracted by the inquirer.

The DGT's ruling

The exemption for healthcare requires that the services be for diagnosis, prevention, or treatment and provided by medical or healthcare professionals. Administrative management or back office services are not ancillary to medical assistance, but rather constitute an end in themselves. Therefore, they must be taxed independently, and administrative management is subject to VAT at the general rate of 21%.

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