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V2806-17 30 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Provision of prostheses by podiatrists exempt from VAT if ancillary to healthcare services

A query was raised regarding whether the provision of prostheses by a podiatrist should be taxed separately or as an ancillary service, and which VAT rate applies. The DGT ruled that if the provision is ancillary to the healthcare service, the entire operation is exempt from VAT.

The question raised

Value Added Tax treatment of the delivery of prostheses by a podiatrist if performed independently of a podiatry service or as an ancillary service to the aforementioned service and, where applicable, the applicable tax rate.

The DGT's ruling

If the delivery of the prosthesis is ancillary to the healthcare service (diagnosis, prevention, or treatment), the delivery follows the regime of the principal operation and is exempt from VAT. If the delivery is not ancillary to the healthcare service, the 10% rate or the 4% rate shall apply if the recipient proves a disability equal to or greater than 33%.

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