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V2467-17 3 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

Reduced 10% VAT rate applies to pharmaceutical products under CN 30 for direct consumer use

A company distributing medical equipment, such as nasal plugs and epistaxis probes, has requested clarification on the applicable VAT rate. The DGT has ruled that to qualify for the 10% reduced rate, products must meet specific classification and usage requirements.

The question raised

Applicable tax rate for the transaction.

The DGT's ruling

To apply the 10% rate to pharmaceutical products of the Combined Nomenclature (Chapter 30), four requirements must be met: they must fall within said category, not be medicines, not be exempt, and be suitable for direct use by the final consumer. This direct use is understood regardless of whether the acquirer is an individual or a healthcare professional. If these requirements are not met or the design condition for personal use by persons with disabilities is not met, the general rate of 21% shall apply.

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