Skip to content
Back to index
V2950-16 24 June 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

4% VAT rate applies to care services if prices are controlled by the Administration

A public entity managing residential, day care, and night care services has requested clarification on the applicable VAT rate. The DGT clarifies that the 4% reduced rate applies if the services are defined under Law 39/2006 and the price is pre-established through an administrative contract or agreed-upon places.

The question raised

Applicable tax rate.

The DGT's ruling

The 4% rate applies to telecare, home help, day/night centers, and residential care defined in Law 39/2006, provided they are provided in contracted places or through prices set by the Administration in administrative contracts. If the service is provided under a private, non-contracted regime with a freely agreed price, the rate is 10%. Services for the prevention and promotion of autonomy do not fall under the 4% rate.

Book your free first meeting