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V2927-19 23 October 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entidad de carácter social

VAT rates for elderly residential services at 10% or 4% depending on nature and funding

The ruling examines the VAT treatment applicable to residential services for the elderly, including basic and complementary services such as psychology or physiotherapy. The DGT determines that the rate depends on whether the entity is of a social nature, whether the service is a concerted service, or if it is an exempt healthcare service.

The question raised

Exemption or, where applicable, the tax rate applicable for Value Added Tax purposes to said services.

The DGT's ruling

Residential services provided by social entities are exempt from VAT. If the entity is not of a social nature, the services are taxed at 10%, unless they are concerted residential care services or services with linked financing covering more than 10% of the price, in which case they are taxed at 4%. Healthcare services (diagnosis, prevention, or treatment) provided by healthcare professionals are exempt. Physiotherapy services for aesthetic purposes are taxed at 21%.

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