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V3196-20 26 October 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo del cero por ciento

0% VAT rate does not apply to soapy sponges for dialysis centres if they are not hospitals

A company has requested a ruling on whether its soapy sponges for medical and healthcare use qualify for the 0% VAT rate under Royal Decree-Law 15/2020. The Directorate-General for Taxes (DGT) has ruled that eligibility depends on whether the recipient is a hospital or an inpatient facility, thereby excluding dialysis centres acting alone.

The question raised

Whether this product may be included in the list of products under Article 8 of Royal Decree-Law 15/2020 so that the 0 percent rate may be applied to it.

The DGT's ruling

The 0% VAT rate for medical supplies only applies if the recipient is a public law entity, clinic, or hospital center. The term 'clinic or hospital center' encompasses centers intended to provide assistance in at least an inpatient regime. Therefore, dialysis centers cannot benefit from the zero rate if they are not part of a hospital center. The determination of whether a product is included in the list of goods in the Annex is the responsibility of the Customs and Excise Department.

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