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V3080-20 14 October 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · atención residencial

Rectification of VAT from 10% to 4% for residential care services via credit note possible

A resident in a care home has enquired about recovering VAT paid at 10% when a 4% rate should have applied due to a linked economic benefit. The DGT indicates that the provider must rectify the tax amounts and refund the excess once the requirements are proven.

The question raised

Date from which the 4 percent tax rate applies to residential care services covered by an economic benefit linked to the service that covers more than 10 percent of the price.

The DGT's ruling

The residential care service provider must rectify the VAT charged if the requirements for the 4% rate are met on the accrual date. To do so, they must issue a corrective invoice and refund the excess amount paid to the client. The accrual of these services of successive performance occurs when the consideration becomes due, normally at the beginning of the month.

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