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V3344-20 12 November 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · refacturación

Recharging insurance at an amount other than the exact premium cost is subject to VAT

A non-profit organisation has enquired whether recharging assistance insurance to its members is exempt from VAT. The DGT has ruled that this is only the case if the exact cost of the premium is recharged; if the amount is higher or lower, the transaction is subject to tax.

The question raised

Clarification is requested regarding the binding ruling of March 9, 2020, consultation number V0562-20 in relation to:

The DGT's ruling

If the entity invoices the exact cost of the insurance premium paid to the insurer, the operation is considered mere re-invoicing and is exempt from VAT. If an amount greater or less than the original premium is invoiced, the operation must be subject to the tax and not exempt. In the case of mixed services, if the personal/healthcare assistance is ancillary to the main mechanical assistance, the package could be exempt.

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