10% reduced VAT applicable to multipodal crutches

The Dirección General de Tributos (DGT) has issued a relevant ruling regarding the tax rate applicable to certain mobility support products. The inquiry focused on determining whether multipodal crutches, intended for people with reduced mobility, can benefit from the reduced VAT rate.

What the DGT has ruled

The body has ruled that crutches are included in the list of goods in section eight of the Annex to the VAT Law. For this 10% tax rate to be applicable, the product must meet an objective condition: it must be designed to alleviate or treat impairments for the personal and exclusive use of people with physical, mental, intellectual, or sensory impairments.

In this sense, as these are crutches designed to fulfill said function of support and treatment of physical impairment, the DGT concludes that these goods must be taxed at the 10% rate.

What this means for you

This ruling has a direct impact in two areas:

• Companies: Establishments and manufacturers that market crutches and other support products for people with disabilities must apply the 10% rate in their invoicing, ensuring compliance with current regulations.
• Consumers: Individuals who acquire these mobility support products benefit from the application of a tax rate lower than the general rate.

What should be done

It is necessary to verify that the products marketed strictly comply with the condition of being designed for the personal and exclusive use of people with the aforementioned impairments. The correct classification of the product is fundamental to avoid errors in the tax settlement. Each technical situation of the product must be analyzed to confirm that it fits the requirements of Law 37/1992.