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V2394-17 21 September 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia social

10% reduced VAT rate applies to youth resource centre coordination services if classified as social assistance

A query was made regarding the VAT rate applicable to a contract for the coordination and organisation of a youth resource centre. The DGT has determined that, provided the provider is not a public law entity or a private social welfare establishment, the 10% reduced rate applies if the service is part of a social assistance programme; otherwise, the standard 21% rate applies.

The question raised

Applicable tax rate.

The DGT's ruling

If the provider does not have the status of a public law entity or a private establishment of a social nature, the coordination services for youth resource centers are not exempt from VAT. The reduced rate of 10% shall apply provided that the services are considered included in a social assistance program. Otherwise, the general tax rate of 21% shall apply.

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