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V2247-20 1 July 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

0% VAT rate applies to Annex goods if the recipient is a public entity, clinic, hospital, or social entity

A company inquired whether the 0% VAT rate on medical supplies depended on the intended sanitary use of the products. The DGT ruled that the rate depends on the type of good (objective scope) and the recipient (subjective scope), rather than the final use.

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 if the objective and subjective requirements of Article 8 of Royal Decree-Law 15/2020 are simultaneously met. The objective scope is determined by the type of good and its CN code according to the Annex, not by its intended use. The subjective scope includes entities under Public Law, clinics or hospital centers (inpatient facilities that conduct research or teaching) and private entities of a social nature pursuant to Article 20.3 of Law 37/1992.

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