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V2300-24 5 November 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia social

Animal-assisted intervention therapist: VAT rate depends on social assistance classification

An independent animal-assisted intervention therapist working with therapy dogs for socially vulnerable individuals seeks clarification on VAT treatment of services and deductibility of dog and subcontractor maintenance. The DGT concludes that the social assistance exemption under Article 20.1.8 of the VAT Law does not apply because the consultant is a physical independent contractor, not a social entity. If services are classified as social assistance, they are subject to 10% VAT; otherwise, 21% VAT applies.

The question raised

Question raised: Whether the services provided are exempt from Value Added Tax or, where applicable, the tax rate applicable to them, as well as the deductibility of the tax incurred on the maintenance and care of dogs and in the hiring of other Animal Assisted Intervention technicians.

The DGT's ruling

The exemption under art. 20.One.8 LIVA (social assistance) requires that the provider be a public law entity or a private establishment of a social nature (non-profit, free of charge, without economic interest for partners). A self-employed natural person does not meet these requirements and cannot avail themselves of the exemption. For non-exempt social assistance services provided by self-employed individuals, the reduced rate of 10% applies (art. 91.One.2.7 LIVA); if they are not classified as social assistance, the general rate of 21% applies. Maintenance fees for dogs are deductible only with proven direct and exclusive use.

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