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V2346-14 9 September 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia social

Temporary residential and support services for people with disabilities are exempt from VAT

A social welfare federation has enquired whether its services, consisting of temporary residential stays and home support for people with disabilities, are exempt from VAT. The Directorate-General for Taxes (DGT) has ruled that, as the entity is of a social nature, these social assistance services are exempt.

The question raised

Application of the exemption contained in article 20.one.8 of Law 37/1992, and in the negative case, the applicable tax rate.

The DGT's ruling

Social assistance benefits for special education and assistance to persons with disabilities are exempt from VAT when provided by entities under Public Law or private establishments of a social nature. Services involving stays in temporary residences and accompaniment or babysitting for persons with disabilities fall within this concept of social assistance. To apply the exemption, the entity must meet the requirements of having no profit motive, having unpaid officers, and not benefiting members or their relatives.

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