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V2638-14 7 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia social

Recreational services for the elderly subject to 10% VAT when provided by a commercial entity

A company sought clarification on whether social services involving recreational activities for elderly day centres were exempt from VAT. The DGT ruled that the exemption only applies if the provider is a social entity; otherwise, the reduced rate applies.

The question raised

VAT liability of the services provided. Exemption, where applicable, of the services provided by such entities or, in the absence of exemption, the applicable tax rate.

The DGT's ruling

Elderly care services are exempt from VAT if provided by entities under Public Law or private establishments of a social nature that comply with the requirements of Article 20.three of Law 37/1992. If the provider is a commercial entity or a natural person without such status, the services are subject to the 10% tax rate. However, the general rate of 21% shall apply if the services are not considered included in a social assistance program.

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