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V2640-20 13 August 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo del cero por ciento

0% VAT rate for medical supplies requires compliance with Annex description and delivery to public entities or hospitals

A medical device company has enquired whether its surgical products qualify for the 0% VAT rate due to COVID-19 or the reduced 10% rate. The DGT has ruled that the 0% rate requires simultaneous compliance with the Annex description and delivery to a public law entity, clinic, or hospital. Furthermore, the 10% rate applies only to products intended for the personal and exclusive use of persons with disabilities.

The question raised

Whether the zero rate of Value Added Tax provided for in Article 8 of Royal Decree-Law 15/2020 would apply to said supplies. In the event of a negative response, whether the tax rate of 10 percent set out in Article 91.One.1.6.c), in relation to the eighth Annex of Law 37/1992, would be applicable.

The DGT's ruling

To apply the 0% rate, the good must simultaneously comply with the CN code and the description in the Annex of Royal Decree-Law 27/2020, and the recipient must be a Public Law entity, clinic, or hospital center (the latter understood as centers with an inpatient regime). The reduced rate of 10% applies to medical equipment designed to alleviate or treat deficiencies for the personal and exclusive use of persons with physical, mental, intellectual, or sensory disabilities. Surgical products that do not meet these conditions are taxed at the general rate of 21%.

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