21% VAT for transfer sheets with handles for reduced mobility

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the application of the Value Added Tax (IVA) rate on products intended for people with reduced mobility. The inquiry focused on determining whether transfer sheets with handles could benefit from the reduced rate.

What the DGT has ruled

The administration has ruled that transfer sheets with handles must be taxed at the general rate of 21%. The criteria establish that the 10% reduced rate is reserved exclusively for medical equipment and assistive products which, due to their objective characteristics, are designed to alleviate or treat deficiencies for the personal and exclusive use of people with physical, mental, intellectual, or sensory impairments.

In this specific case, the DGT concludes that the sheet with handles is not included in the product categories mentioned in the eighth section of the Annex to the IVA Law. Since it does not meet the specific requirements to be considered an assistive product eligible for the reduced rate, the general rate must be applied.

What this means for you

This ruling has a direct impact on two profiles:

• Companies: Establishments and manufacturers marketing this type of transfer sheet must mandatory apply 21% IVA on their invoices.
• Consumers: The end user purchasing this assistive product must bear the cost of the general tax rate of 21%.

What should be done

It is necessary for companies in the orthopedic and assistive products sector to verify the tax classification of their catalog. The correct application of the tax rate is fundamental to avoid contingencies before the Tax Administration. Given that the interpretation of what constitutes an assistive product for the reduced rate is strict, it is recommended to assess the tax situation of each product according to its design and technical purpose.