Back to index
V3205-21 23 December 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

City Council payments form part of the taxable base and are taxed at 4%, 10% or are exempt depending on the provider

A City Council inquires whether transfers to finance a nursing home form part of the VAT taxable base. The DGT responds that they do constitute consideration and that the applicable rate depends on whether the provider is a social entity or if the service is under a formal agreement.

The question raised

Question raised: Whether the aforementioned transfers or payments form part of the taxable base of the services provided by the concessionaire entity and, if the answer is positive, whether the Value Added Tax must be understood as included in that amount as well as the tax rate applicable to the service provided.

The DGT's ruling

The City Council transfers constitute consideration for residential care and day center services. If the provider is a public law entity or a private establishment of a social nature, the service is exempt. If it is an entrepreneur without such status, the 4% rate shall apply if the service is one of those defined in Law 39/2006 and is provided through agreed places or an administrative contract with a fixed price, or the 10% rate if it is under a private non-agreed regime.

Email
Contact