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V3005-14 5 November 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Driving, boating or firearms proficiency certificates may be VAT exempt if intended for health protection

An entity managing psychophysical fitness reports for driving, firearms, and nautical licences has queried whether its services, and those of subcontracted professionals, are exempt from VAT. The DGT has determined that the exemption applies if the primary purpose is prevention and diagnosis to protect the individual's health.

The question raised

Question raised: Taxation for Value Added Tax purposes of the services provided. Application of the exemption under art. 20.one.3º to the services performed by psychologists and doctors for the applicant and the services performed by the latter for their clients.

The DGT's ruling

Medical or psychological assistance services are exempt from VAT if they are intended for the diagnosis, prevention, or treatment of diseases. In the case of certificates of fitness to drive, navigate, or use weapons, the exemption applies if the primary objective is to enable prevention and early diagnosis, as well as health monitoring, thereby protecting the individual. The exemption does not apply if the primary purpose of the service is to facilitate an opinion so that a third party may make a decision with legal effects.

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