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V2640-17 16 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · recargo de equivalencia

Preparation of magistral formulas allows retention of the equivalence surcharge regime and is taxed at 4%

A pharmacy owner has enquired about the VAT regime applicable to the preparation of magistral formulas. The DGT has determined that this activity does not constitute a transformation that results in the loss of retail trader status, and that magistral formulas are subject to the reduced rate of 4%.

The question raised

1. Regime and tax rate applicable in Value Added Tax to the activity of preparing magistral formulas.

The DGT's ruling

The preparation of magistral formulas by pharmacies is not considered a transformation, and therefore does not prevent the application of the special regime of the equivalence surcharge. The supplies, intra-Community acquisitions, or imports of magistral formulas are taxed at the rate of 4% provided they are classified as medicinal products for human use, galenic form, magistral formula, or officinal preparation. To maintain the status of retail trader, sales to entrepreneurs or professionals must not exceed 20% of total sales.

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