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V3178-14 27 November 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Clinical psychology services are VAT exempt, but guidance and counselling are subject to 10% or 21% VAT

A psychologist consulted a professional association regarding the taxation of their services. The DGT has determined that only diagnostic and treatment services for illnesses are exempt from VAT, whereas other services such as guidance or educational intervention are subject to reduced or standard VAT rates.

The question raised

Taxation of said operations by Value Added Tax.

The DGT's ruling

Psychology services are exempt from VAT when they consist of healthcare (diagnosis, prevention, or treatment of diseases). Guidance, counseling, or group intervention services regarding learning and social skills are not exempt and are taxed at 10%. The general rate of 21% shall apply to services that are neither healthcare services nor included in social assistance programs. If taxable and exempt services are provided for a single price, the taxable base shall be determined according to the market value of each.

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